Which type of account allows for educational savings for both postsecondary and K-12 education?

The Coverdell Education Savings Account (ESA) is specifically designed to facilitate educational savings for both postsecondary education, such as college and universities, and K-12 education, allowing parents or guardians to save for a broader range of educational expenses. The key feature of the ESA is that contributions can be used for qualified expenses at any educational level, which includes tuition, books, supplies, and even certain related expenses for K-12 students, such as tutoring and educational materials, in addition to higher education costs.

In contrast, a 401(k) Plan is primarily a retirement savings plan and does not have provisions for educational expenses. A Roth IRA is another retirement account that allows for tax-free withdrawals under certain conditions, but it is not specifically aimed at educational savings and does not cater to K-12 expenses. Tax-exempt educational accounts can refer to a variety of accounts, but they are less commonly defined and include various provisions that might not cover both postsecondary and K-12 education comprehensively. Thus, the Coverdell ESA stands out as the most suitable answer for those looking to save for educational expenses at all levels.