Coverdell - When Are Coverdell ESA Distributions Tax-Free?

Per IRS Publication 970 Tax Benefits for Education, page 44:


The designated beneficiary of a Coverdell ESA can take a distribution at any time. Whether the distributions are tax free depends, in part, on whether the distributions are equal to or less than the amount of Adjusted qualified education expenses (AQEE) (defined later) the beneficiary has in the same tax year.

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