COVERDELL EDUCATION SAVINGS ACCOUNT
Saving for college can be simple with the right investment program. A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for education in elementary, secondary, and post-secondary educational institutions.
COVERDELL ESA HIGHLIGHTS:
- Contribute up to $2,000 per year until the beneficiary’s 18th birthday. (If you meet the eligibility requirements. Eligibility varies depending on the income level of the contributor).
- Beneficiary may have more than one account in his or her name.
- Contributions to a Coverdell ESA are not tax deductible, but amounts deposited in the account grow tax free until distributed.
- Withdrawals may be used for K–12 expenses as well as college.
- Account earnings grow tax-deferred. Distributions are typically tax-free when the money is used before the beneficiary reaches the age of 30 and is used for qualified education expenses, such as tuition, fees, books, and room and board.
You may download account forms or request an account kit by calling 1-888-793-5333.