Coverdell Educational Savings Account
A Coverdell Education Savings Account (ESA) is a tax-deferred savings and investment account authorized by the Internal Revenue Code to encourage people to save for future education costs (formerly known as Education IRAs). A Coverdell ESA can be used for qualified expenses in accredited two- and four-year public and private colleges and universities in the United States and also can be used for tuition at elementary and secondary schools (Kindergarten through grade 12), which can be public, private or religious, as well as for college, technical school or postgraduate work.
- Accounts can be established for any beneficiary under age 18, unless it is a beneficiary with special needs
- Contributions are limited to $2,000 per year
- There are income restrictions (less than $110,000 if single; less than $220,000 if married filing jointly)
- Withdrawals, when used for educational purposes, are exempt from federal income taxes
A Coverdell ESA can be opened at any of our branches. Please ask us for more information!