What is the maximum contribution Jane can make to her son Edgar's CESA in 2023?

The maximum contribution that an individual can make to a Coverdell Education Savings Account (CESA) for a single beneficiary, such as Jane's son Edgar, is $2,000 per year. This limit applies to contributions made on behalf of a beneficiary to a CESA, regardless of the number of contributors.

In this context, Jane can contribute a total of up to $2,000 to Edgar's CESA in 2023. This contribution can be made in one lump sum or in smaller amounts throughout the year, but it cannot exceed the annual limit. Additionally, the contributions are not tax-deductible, but the earnings grow tax-free as long as they are used for qualified educational expenses.

This limit is established by tax law to encourage savings for educational purposes while ensuring that contributions do not exceed a set amount, which helps maintain the purpose of the account as a savings tool for education rather than a general savings account.