Coverdell Education Savings Accounts
Higher education is increasingly important in our fast paced world and the cost is climbing at an unprecedented rate. If you’re concerned about paying for your child’s education, a Coverdell ESA can be an effective way to save.
Although contributions to a Coverdell ESA are not tax deductible, both the earnings and the withdrawals are tax free if used for educational purposes. Parents, grandparents and other relatives can contribute to a Coverdell IRA as long as the total annual contribution per child doesn’t exceed $2,000.
Distributions are not limited to college costs. They can also be used for qualified expenses at most public, private, and parochial elementary and secondary schools.
Our Member Services representatives can provide you with detailed information and resources about Coverdell ESA’s. It’s important to start saving early, so give your child or grandchild a jump start today!