Account Types
What is the maximum annual contribution to a Coverdell Education Savings Account (ESA)?
Coverdell ESA: $2,000/year max, income limits apply, K-12 and college expenses.
Complete Analysis & Legal Rationale
The maximum annual contribution to a Coverdell ESA is $2,000 per beneficiary. Contributions are not tax-deductible, but earnings grow tax-free when used for qualified education expenses.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
$500 was the original limit before it was increased to $2,000 in 2001.
Matches the verified teaching point in the explanation.
$5,500 is an outdated IRA contribution limit, not applicable to Coverdell ESAs.
$18,500 is a retirement plan contribution limit, not for education accounts.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.