Which of the following statements about a Coverdell Education Savings Account (ESA) is NOT true?
A) Contributions of $2,000 per child per year are allowed.
B) Contributions are tax deductible, subject to a modified AGI phaseout.
C) Contributions can be made to this type of plan and a Section 529 plan in the same year for the same beneficiary.
D) The funds grow income tax deferred and, if used for elementary, secondary, or college educational expenses, the earnings are tax free.
Answer: B)