Chandelle and Treymane are married and have combined AGI of $215,000. They would like to contribute to a Coverdell Education Savings Account for their grandson. What is the maximum contribution they can make in 2015?

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Quizplus · Accepted Answer

The maximum contribution to a Coverdell ESA is $2,000 per beneficiary. However, for married couples filing jointly, the contribution limit is reduced if their modified AGI is between $190,000 and $220,000. Since their AGI is $215,000, they fall within this phase-out range. The reduction is calculated as follows: $2,000 * ($220,000 - $215,000) / $30,000 = $333.33, which rounds down to $333.

Chandelle and Treymane Are Married and Have Combined AGI of $215,000