COVERDELL EDUCATION SAVINGS

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Save for Your Child’s Education…the Tax-Smart Way

A Coverdell Education Savings Account (CESA) is a great way to start saving for your child’s education. Distributions are tax-free as long as they are used for qualified education expenses, such as tuition and fees, books, supplies, and room and board.

Account Features

Interest earned grows tax-free until distributed

Distributions for qualified education expenses at eligible institutions are tax-free
CD terms available from one to five years with competitive fixed rates
Unused savings can be rolled over into a Coverdell account for another family member
FDIC insured up to the maximum amount allowable by law

Requirements

Your modified adjusted gross income (MAGI) must be less than the limit set by Congress
Open your account with as little as $100
Total contributions to all of a beneficiary’s Coverdell accounts cannot exceed $2,000 per year
Contributions can be made until the beneficiary turns 18
All funds must be distributed to the beneficiary, or rolled over to another beneficiary’s account, by the time the beneficiary turns 30

Please consult your tax professional for tax rules regarding education savings accounts.

Open An Account

Speak to a Specialist

866-762-8392

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