Contributions to a QTP on behalf of any beneficiary cannot be more than the amount necessary to provide for the qualified higher education expenses of the beneficiary.

For 2001 no contributions could be made to a Coverdell ESA (formerly known as an education IRA) on behalf of a beneficiary if any amount was contributed during 2001 to a QTP on behalf of the same beneficiary. Any amount contributed to the Coverdell ESA must be treated as an excess contribution to the Coverdell ESA. Coverdell ESAs are discussed in chapter 4.

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