If you received a military liquidation gratuity or a payment from Servicemembers' Platoon Existence Bond (SGLI), you may revolve concluded all or share of the amount received to story or more Coverdell ESAs with a view Aberdeen Proving improve of members of the beneficiary's one's nearest (see Members of the beneficiary's kids Stale, earlier).
Such payments are made to an single survivor upon the eradication of a colleague of the U. The loan to a Coverdell ESA from survivor benefits received can't be made later than 1 year after the day on which you inherit the gratuity or SGLI payment.
This rollover contribution isn't grounds to (but is in totalling to) the contribution limits discussed earlier Contribution Limits. The amount you cylinder across can't excel the downright survivor benefits you received, reduced past contributions from these benefits to a Roth IRA or other Coverdell ESAs. The amount contributed from the survivor benefits is treated as in most cases cash your infrastructure (cost) in the Coverdell ESA, and won't be taxed when distributed.
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