Coverdell Education Savings Account*
Formerly the Education IRA, this account can be established for the purpose of paying qualified elementary, secondary or higher education expenses of a designated child. It allows you to contribute into the account with tax-free dollars and earnings grow tax-deferred. We offer non-tax-deductible contributions and tax-free earnings if earnings are used for higher education expenses.
*Please consult your tax advisor.
Coverdell Education Savings Account - Frequently Asked Questions
Who is eligible?
Any child younger than age 18 can be named a beneficiary.
How much can I contribute?
The annual per-designated-beneficiary contribution limit is $2,000 per year, per child younger than age 18. If parents, grandparents and others have each set up an account for the same child, their combined contributions cannot exceed $2,000 per child per year.
What are the withdrawal requirements?
The funds must be used by the time the child reaches age 30 on qualified educational expenses such as tuition, fees, books, supplies, uniforms, etc. Assets of this account may also be transferred to the assets of a sibling's Coverdell Education Savings Account.
Coverdell Savings Account tax deductibility
Contributions are not tax-deductible. Please consult your tax advisor.
Federally insured by NCUA.