Question

Which of the following is a characteristic of the coverdell education savings account?

A) a families income does not affect the contribution

B) it provides only a few investment options

C) it covers college tuition only

D) there is a maximum yearly contribution limit

Answer 1

D) there is a maximum yearly contribution limit

Step-by-step explanation:

4.3.2

Answer 2

D) there is a maximum yearly contribution limit is the answer,

Step-by-step explanation:

Coverdell education savings account also known as Coverdell ESA, is a tax-advantaged investment account in the U.S.; it is designed to encourage savings to cover future expenses related to education, like books, tuition, or uniforms. Since 2013, the permanent limit is $2,000, so letter D is the right answer.