The Economic Growth & Tax Relief Reconciliation Act of 2001 makes several
needed improvements to the Education IRA (now known as the Coverdell
education savings account). Following are some of the highlights:
It increases the annual contribution limit from $500 in 2001 to $2,000 starting in tax year 2002.
It changes the definition of qualified education expenses that may be paid tax free from an Education
IRA to include certain qualified elementary and secondary school expenses.
It increases the adjusted gross income (AGI) contribution phase-out range for
married taxpayers filing a joint tax return from the current $150,000 -$160,000
to $190,000 -$220,000 starting with tax year 2002. The AGI phase-out range for single
taxpayers will remain at the current $95,000 - $110,000.
The deadline for making Education IRA contributions is extended to the
deadline for filing the contributor’s tax return (April 15th following the
year for which the contribution is made) not including extensions. The contribution
deadline for 2001 is December 31, 2001.
For more information, visit www.usfunds.com or call an investor representative at 1-800-US-FUNDS.
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Investment Professionals 