Both Coverdell Education Savings Accounts and 529 College Savings Plans are tax advantaged ways to save for college with a few key differences. Coverdells and 529s are similar in that gains are not taxable when funds are withdrawn to pay for qualified education expenses and both are included as assets in financial aid calculations. However, Coverdells can be used to pay for grade school and high school expenses, while 529s can only be used to pay for college. Additionally, contributions to a Coverdell are limited to $2000 per year and include an additional restriction that Coverdell funds must be used by age 30.  Review the IRS.gov website for specific Coverdell and 529 plan details.