Final answer:
A Coverdell Education Savings Account (ESA) is not deductible and has a contribution limit of $2,000 per year per beneficiary.
Step-by-step explanation:
No, a Coverdell Education Savings Account (ESA) is not deductible. Contributions to a Coverdell ESA are made on an after-tax basis, meaning they are not tax-deductible. However, any earnings in the account grow tax-free, and qualified withdrawals are also tax-free.
The contribution limit for a Coverdell ESA is set at $2,000 per year per beneficiary. This means that you can contribute up to $2,000 annually to the account for each child or student who is the designated beneficiary of the ESA.
It's important to note that the contribution limit may be subject to certain income restrictions. For example, if your Modified Adjusted Gross Income (MAGI) exceeds a certain threshold, you may not be eligible to make a full contribution to a Coverdell ESA.