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My wife and I are expecting our first child towards the end of this year so I'm just starting to read up on savings vehicles for education expenses. I read the past 2 years worth of posts on this board and that has helped a lot.

I'm definitely going to open up a Coverdell ESA because I want the flexibility of investment choices that it offers. I have a Roth IRA already so I'm trying to absorb all the pros/cons of using that as well. It may complicate things that I'll (hopefully) be nearing retirement when our daughter is going to college (we're relatively old first-time parents).

Anyway, my question is about the contribution limit for a Coverdell. I saw a footnote in the Wikipedia entry that pointed out that the $2000 contribution limit is set to expire at the end of this year unless Congress votes to extend it. If it expires, the limit returns to the old $500 level. That seems like a useless amount of money so I'm assuming Congress will make the $2k limit permanent, but assuming Congress to do the sensible thing isn't generally a good idea.

Does anyone have any insight into whether this is a real concern or not?


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