Coverdell Education Savings Accounts (ESAs) are a great way to help pay for your child’s educational expenses, such as tuition, fees, books, supplies, and equipment.
- Unlike State 529 plans, Coverdell ESAs can be used to pay for qualified elementary and secondary education expenses.
- Your earnings grow on a tax-deferred basis and distributions are tax-free if the money is used to pay qualified education expenses.
- Yearly contributions cannot exceed $2,000 per child.
- Anyone, family member or non-family member, can contribute to a child's ESA.
- Contributions can be made until he or she reaches the age of 18.*
- ESA contributions do not affect your ability to make Traditional or Roth IRA contributions.
- Rates are set by the Board of Directors and dividends are paid quarterly.
Give your child the gift of education. For more information about our Coverdell ESAs please contact our Member Services Department.
*The age 18 limit does not apply to special needs individuals.