For Education IRAs, is the 2016 contribution limit based upon your 2015 income?

[AndreaG · Accepted solution]

No. The $2000 contribution limit is based on your 2016 modified adjusted gross income. To make contributions to a Coverdell ESA, modified adjusted gross income has to be less than $110,000 and less than $220,000 if you are married filing jointly. This contribution limit is reduced if your modified adjusted gross income is betwen $95,000 and $110,000 or between 190,000 and 220,000 if married filing jointly. Please refer to pages 48-49 of pub 970 under the headings, "contributions", "reduced limit", "modified adjusted gross income" and "figuring the limit' if you would like additional clarification. https://www.irs.gov/pub/irs-pdf/p970.pdf

With respect to qualified tuition programs, contributions cant be more than the amount necessary to provide for the qualified education expenses of the beneficiary. There are no income restrictions on those who contribute to the program. Please refer to page 58 of pub 970 under the heading, "how much can you contribute?" if you would like additional clarification.