Coverdell ESA’s are a tax-favored tool for parents and students to save for education expenses. This program is similar to other IRAs that are offered. You can read about the other IRAs programs we offer on our website.
- Help pay for qualified higher education expenses, but also for qualified elementary and secondary education expenses.
- The total contribution to all accounts on behalf of a beneficiary in any year, up to a child’s 18th birthday, cannot exceed $2,000.
- Amounts remaining in the account must be distributed when the designated beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. Certain transfers to members of the beneficiary’s family are permitted.
See our current interest rates.
For more information regarding ESAs, please visit: Topic No. 310 Coverdell Education Savings Accounts | Internal Revenue Service (irs.gov)
If you have tax questions in regard to Coverdell ESA’s, consider talking with a competent tax advisor.