Coverdell Education Savings Accounts (ESAs)
Investing in the future of a loved one today.
College is expensive, so start a savings plan for a designated beneficiary today.
For People Who…
- Want to invest in the future college expenses of a loved one.
- Have some extra money a year to help their beneficiary.
Benefits
- Any individual may open an ESA!
- Interest earnings are tax-free on the education expenses.
- Funds may be transferred to another designated beneficiary.
Features
- You may make a contribution up to $2,000/year.
- Contributions are not tax-deductible.
- Funds must be used within 30 days of attaining age 30 of the beneficiary; otherwise, the Coverdell ESA funds become subject to income taxes and a 10% IRS tax penalty.
Additional Information
- Purpose is to pay for future qualified education expenses of a designated beneficiary under age 18.
- Any individual may open a Coverdell ESA for a designated beneficiary.
- Maximum contributions of $2,000 per year.
- Interest earnings are tax-free when used for a beneficiary's education expenses.
- Funds must be used within 30 days of the beneficiary attaining age 30; otherwise, Coverdell ESA funds become subject to income taxes and a 10% tax penalty.
- Funds may be transferred to another designated beneficiary.
Ways to Apply
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