Coverdell Education Savings Account
A Coverdell Education Savings Account can help you with future educational expenses, such as your child’s college education. This non-deductible account allows tax free withdrawals to pay for qualified education expenses such as tuition, fees, room and board, books and supplies.
Coverdell Education Savings Features & Benefits
- Federally insured by the NCUA
- Can be established for any child (Designated Beneficiary) under age 18
- Contributions can be made up until the child’s 18th birthday
- $2000 annual limit per beneficiary
- The contributor does not have to be a relative of the child
- Contributions are made with after tax dollars; earnings are tax-deferred
- Earnings are tax free when distributions are used for qualified education expenses of the Designated Beneficiary.
Eligible Institutions: Generally any accredited
- College
- University
- Junior or community college
- Private elementary or secondary school
- Trade schools
Contact us and we will be glad to send you a brochure on this type of savings account.
As with any tax advantage savings account, it is always a good idea to consult a tax professional.
Parents
