On July 26, 2001, President Bush signed into law a measure that renames Education IRAs as Coverdell Education Savings Accounts to honor the late Paul Coverdell, who served as senator from Georgia from January 1993 until his death in July 2000. The legislation made a substantive change to the savings account provisions.  In 2001, taxpayers can invest up to $500 tax-free for a child's education, but in 2002, that amount increases to $2,000.

Source:  The Tax Advisor
         Sept. 2001