[berlinsmommy]

I hope someone can help me! Berlin is going to a private school that is preschool-12th grade. If I read the IRS site correctly, Coverdell ESAs can be used for private school tuition for grades 1-12. I also understand that the deposits do not earn any sort of tax benefits, but that the earnings are tax free as long as the Coverdell is used for education expenses (such as her tuition from grades 1-12).

I also do understand that this is totally different than a 529. We already have 2 529s for her, but I may want to open a Coverdell for her elementary and high school tuition, but I'm wondering if it is even worth it? Where do I go to set one up? Are there fees to them, like some 529s have? If so, would it be better to stick money in CDs or similar which have no fees, but also the earnings are taxed?

Just want to explore my options since first grade is only 3 years away, and it would be nice to stash away some money for future tuition, especially since I'm going to be working full time for a few months (coworker is having a baby), and for the next few months we will have higher than usual income, but of course I want to utilize as much tax savings and/or interest income as possible.