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Education Savings Account: Introduction
Why Establish an Education Savings Account?
With the increasing costs of education, it is only practical that individuals save for those future student years. One of the means of saving for these years is the education savings account (ESA). The assets contributed to an ESA accumulate earnings tax deferred, and distributions used for qualified education expenses incurred at elementary, secondary and post-secondary educational institutions are tax and penalty free.
Contributions are discretionary, which means that the contributor/s are not required to make deposits to the account every year.
Next: Education Savings Account: Eligibility
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