Say a prayer for the Coverdell. The popular educational savings lynchpin for many families may soon lose most of its allure.

Key provisions of the Coverdell account will be eliminated at the end of this year under a “sunset” deadline unless Congress acts to extend the benefits. That’s a long shot, experts say.

The changes, among other things, would significantly reduce the maximum annual contribution, restrict allowable expenses, and eliminate certain tax benefits. All of which would make for an unattractive future for Coverdell’s, which have long provided a relatively simple and flexible way to stash cash for ever-escalating educational expenses.

Under current law, any individual, including children, can contribute to a Coverdell as long as modified adjusted gross income is below $110,000 or $220,000 for those filing joint returns. However, only those with modified adjusted gross income below $95,000 (or $190,000 on joint returns) can make the maximum contributions of $2,000 a year up until a student-beneficiary turns 18, unless it’s for a special-needs student.

For now, the money can be applied to cover college and pre-college education expenses for kindergarten through 12th grade in public or private schools. Covered expenses include tuition, academic tutoring, books, computers, room and board, school uniforms and transportation.

Although contributions are not tax-deductible, withdrawals are exempt from federal taxes as long as the money is used for the qualified expenses.

But barring congressional action by Dec. 31, the maximum annual contribution will be cut to $500 in 2011.

In addition, the tax-free withdrawals from Coverdell’s to pay for pre-college educational expenses will be eliminated. The timing is particularly bad, given that cash-strapped school districts and private schools have added fees and raised tuition.

While U.S. Sen. Charles Grassley, R-Iowa, has introduced legislation that would essentially make permanent the current provisions in Coverdell accounts, the bill hasn’t generated much momentum. .

If you’re weighing a Coverdell contribution as the tax-filing deadline approaches, consider your options, said Raquel Granahan, a senior vice president of college savings plans with OppenheimerFunds in New York.

For example, if you already have a Coverdell account and have been using the funds to pay for K-12 expenses, you may want to spend the money more quickly this year, Granahan said.

Or, if college savings is the goal, consider a $4,000 contribution by April 15 — $2,000 for 2009 and $2,000 for this year.

Another option is to roll the money into a state-sponsored 529 account college account. The 529s offer similar tax benefits and don’t have annual contribution caps, though most states limit you to $200,000 to $300,000 on contributions over the lifetime of the account.

“You won’t skip a beat,” Granahan said.