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PLAN                 NEW BENEFITS                    INCOME LIMITS*



COVERDELL            Limits on contributions rise    Contributions phase out
EDUCATION            to $2,000 a year per child;     at $190,000-$220,000
SAVINGS ACCOUNT**    money can be used at            (married); $95,000-
                     elementary and secondary        $110,000 (single)
                     schools



EMPLOYER-            Up to $5,250 a year can         Not more than 5% of the
PROVIDED             be excluded from income;        amounts paid can go to
EDUCATIONAL          benefit applies to graduate     business owners or
ASSISTANCE           and undergraduate courses       their spouses or
                                                     children



529 COLLEGE          Earnings grow free from         No restrictions
SAVING PLANS         federal taxes



HIGHER EDUCATION     Deduction of up to $3,000       $130,000 (married);
EXPENSES             a year in tuition and           $65,000 (single)
                     related fees



STUDENT LOANS        No time limit on deduction      Deduction phases-out at
                     of up to $2,500 in annual       $100,000-$130,000
                     interest payments               (married); $50,000-
                                                       $65,000 (single)






* Adjusted gross income
** Formerly called the Education IRA