If your child isn’t pursuing a degree in winning the lottery, you can count on big costs for college. Fortunately, our Coverdell Education Savings Account (CESA) is here to help. It’s the college savings account that will help your child win at life.
Tax- and penalty-free withdrawals
Withdraw when you need to for qualified educational expenses.1
Save up to $2,000 per year
Members can save up to $2,000 per child per year.
Transfer funds between children
Funds can be transferred from one child’s account to an account for another child in the family
Open with $25
Minimum opening deposit is just $25. A $25 balance is required to earn dividends.
Use with other plans
This college savings account can be used in conjunction with other education savings plans.
Your college savings are federally insured up to $250,000 by the National Credit Union Administration (NCUA).
Income limits are up to $110,000 for single or up to $220,000 (combined) for married.
Contributions not allowed after the beneficiary reaches age 18.
Coverdell ESA funds must be withdrawn when beneficiary reaches age 30.
Qualified expenses include tuition, fees, books, computer equipment and technology required for elementary, secondary and post-secondary education. Additional qualified expenses can be found at the IRS website.
1 Consult your tax advisor. Although the funds you contribute are not tax-deductible, earnings on your investment are tax-deferred, and withdrawals of your contributions and earnings, under certain conditions, are tax-free after five years.