provided the money is used for tuition

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LQZ

Senior Member
Mandarin
You could also open a Coverdell Education Savings Account (previously called an Education IRA) that lets you put $2,000 a year, after taxes, into a bank account or other investments; earnings on that type of account are totally tax-free, provided the money is used for tuition when it's withdrawn. CNN money

Dear all,

I have been staring at the bold part for a while and am wondering whether it is correct, especially the part in red. Could you please explain to me? Thanks.




LQZ
 
  • Tazzler

    Senior Member
    American English
    "earnings" refers to the interest you earn on the money in that account. You won't have to pay tax on the interest you earn only if you use that money to pay tuition.
     

    LQZ

    Senior Member
    Mandarin
    Thank you, Tazzler. I've already found that misunderstanding "provided" played a role in my question. Now, I've got it. :)
     
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