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| Coverdell Education Savings Accounts |
 2. The total of all contributions to all ESAs set up for one beneficiary cannot exceed $2,000. In case other family members set up ESAs for your child, you need to check with them to be sure this contribution limit is not exceeded.
If you exceed these contribution limits, there is a 6% excise tax on excess contributions unless the excess amount is withdrawn within six months of the contribution.
It is advised to invest $2,000 a year at an annual yield of 6% from the time your child is born, and you will have a little more than $61,000 in college savings when your child turns 18.
Income Restrictions
If their modified adjusted gross income is less than $190,000 a year, a couple filing a joint return can contribute $2,000. The ability to contribute is phased out for couples filing jointly with modified adjusted gross incomes of between $190,000 and $220,000. Contributions are not allowed for couples filing jointly whose modified adjusted gross income is above $220,000.
If their modified adjusted gross income is less than $95,000, single taxpayers will be able to contribute $2,000. Single taxpayers' ability to contribute is phased out if their modified adjusted gross income is between $95,000 and $110,000. No contributions are allowed if their modified adjusted gross income is above $110,000.
 Corporations and other organizations can also contribute to ESAs and are not subject to any income limits.
Fees, Charges and Expenses
Charges, fees and expenses will range depending on the investments you select and the institution with which you open an ESA. Do not forget, however, that because of the fairly low contribution limits, even small annual fees or expenses could make a big difference in the value of your investment over time.
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