American IRA Discusses How Coverdell Accounts Create Self-Directed IRA-Style Strategies for College Savings

ASHEVILLE, N.C., March 20, 2019 /PRNewswire-PRWeb/ -- What if an investor wants to utilize Self-Directed IRA-style strategies to save for college? There was once a time when their options were limited. But with Coverdell accounts, according to a recent article at the American IRA blog, investors can utilize special plans for tax protections that make it easier to save for college.

Just what is a Coverdell account? A Self-Directed Coverdell Education Savings Account, or CESA, also sometimes known as an Education Savings Account, is similar to 529 plans, but features some important differences. Because a Section 529 plan does not allow investors to use self-directed strategies for their accounts, a CESA may afford investors a greater degree of freedom when it comes to guiding the direction of their money.

As American IRA pointed out at its blog, there are some limitations of which investors need to remain aware: for example, the designated beneficiary of the account must be under the age of 18, or be a special needs beneficiary, for it to be a legitimate account. Also, the designation of a Self-Directed Coverdell CESA has to be made upon its creation, which means investors have to be aware of this style of savings plan even before opening it.

"People have a lot of options when it comes to saving for college," noted Jim Hitt, CEO of American IRA. "Sometimes they think that they should only ever use a Section 529 plan. And while those plans have all sorts of nice benefits for a particular type of investor, that does not mean it's the only option out there. The Self-Directed CESA can be a great way for someone to call their own shots, while adhering to the strict rules of the account itself."

The recent blog post at http://www.AmericanIRA.com detailed some of these requirements, as well as strategies investors can use to maximize their contributions to the CESA. Investors that understand the requirements of these accounts as well as the freedoms they afford could have a leg up when it comes to putting aside money for their children's college education.

For more information, visit the website at http://www.AmericanIRA.com or call 866-7500-IRA.

"About:
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC."

SOURCE American IRA