He or she might be a kiddo now, but one day soon they’ll be packing to move to campus. Be prepared with a Coverdell ESA.
Key Features
-
Tax Advantages*
-
Competitive Dividends
-
No Setup or Annual Fee
Details
- Start saving now to fund your children's, grandchildren's, nieces', or nephews' education
- No setup or annual fee
- Dividends grow tax-free
- Withdrawals are tax-free when used for qualified education expenses*
- Designated beneficiary must be under 18 when contributions are made
- $2,000 maximum annual contribution per child
- Contributions are not tax deductible
- Certain income limits apply for contributions**
- The money must be withdrawn by the time beneficiary turns 30***
- The ESA can be rolled over without penalty to another family member
- Funds can be deposited into our ESA savings account and ESA Certificates of Deposit (CD)
- $500 minimum deposit to open an ESA CD
- $100 minimum deposit to earn dividends on the ESA savings account
*Subject to some minimal conditions. Consult a tax advisor.
**Consult a tax advisor.
***Or older for special needs beneficiary.