Which of the following describes a benefit of using a Coverdell Education Savings Account as a savings vehicle for qualified education expenses for a designated beneficiary? Distributions are tax-free when the total distribution is not more than the qualified education expenses. Qualifying contributions are deductible on the federal tax return for the year in which they are contributed. There are no income phaseouts for taxpayers who wish to contribute. Taxpayers may contribute up to $5,500 per year for each beneficiary.