So, I screwed up … I closed a couple Coverdell ESAs last month that I've had for my daughters for 12 years. They don't have much in them, about $1500 each. I totally forgot that this is supposed to be for educational expenses only, I was going to just put the money in their savings accounts. I think if I do that I'll have to file taxes for them, etc. If I roll them into new ESAs will I be able to avoid a tax hit? Or, maybe I can reopen the accounts, I haven't even cashed the checks yet. I have 529 plans for them but from what I understand that's not good enough, it has to be an ESA, true? Thanks.
