<p>Are the gains made on contributions to this type of IRA (which is used only for college) taxable when the IRA is cashed out?</p>
<p>If you mean the Coverdell ESA, no.</p>
<p>No, not if you have enough qualified expenses in the same tax year as the withdrawal to cover the amount withdrawn. Qualified expenses for a Coverdell withdrawal includes room and board.</p>