Hi everyone,

Rebecca wrote me and was wondering what savings vehicle she should use to get a tax advantage to pay for the private high school her son is attending?

Unfortunately there is nothing like the 529 plan for private K-12 school education. You can contribute to an Coverdell Education Savings Account, but the limit is $2,000 per year and child and there are income limitations. They are around $200K if married, about half if single. There are also no tax deduction or credits available to help on the federal income tax return. They are not the greatest with several restrictions, so make sure you understand them fully before contributing.

If you have school vouchers in your area and you qualify, that would be the only thing that could lighten the financial burden.

Patrick