When can contributions to a Coverdell ESA be made, and by what age must they be used?

Contributions to a Coverdell Education Savings Account (ESA) can be made until the beneficiary reaches age 18. This limit is designed to ensure that the funds are specifically targeted for education expenses, which typically arise during the years a child is in school.

The requirement that the funds must be used by age 30 aligns with the objective of the Coverdell ESA to encourage saving for education. By age 30, funds that remain in the account must either be withdrawn for non-educational purposes or rolled over to another eligible beneficiary. This ensures that the account serves its intended purpose of supporting educational expenses within a specific timeframe.

The other options do not correctly reflect the contribution timeline and withdrawal age for the Coverdell ESA, which specifically states that contributions cease at age 18 and required usage of funds by age 30.