Yes. You can fund a Coverdell education savings account and a 529 account in the same year for the same beneficiary without giving rise to penalties. There is an annual contribution limit of $2,000 per year for Coverdell accounts, while most 529 plans have lifetime contribution limits of at least $300,000.

And keep in mind that, unlike a 529 plan, your ability to contribute to a Coverdell ESA depends on your income level. To make a full contribution, single filers must have a modified adjusted gross income (MAGI) of $95,000 or less, and joint filers must have a MAGI of $190,000 or less.