Education Savings (Coverdell ESA)
Plan for education expenses.
A Coverdell Education Savings Account (ESA) helps families set money aside for qualified education expenses with tax advantages to support your child’s future.
How it works
- Open an account for designated beneficiary
- Make contributions (up to annual limits)
- Funds grow tax-deferred over time
- Use tax-free distributions for qualified education expenses
A good fit for
- Saving for K-12 and higher education expenses
- Growing funds tax-deferred for future education needs
- Planning ahead with a dedicated education savings account
- Supporting a child’s academic journey from an early age
What to know before opening
- Beneficiary must be under age 18 (or a special needs beneficiary) at account opening
- Contributions are not tax-deductible
- Total contributions are limited to $2,000 per year per beneficiary
- Income limits apply for contributions based on federal guidelines
- Funds can generally be used tax-free for qualified education expenses
- Funds must generally be used before age 30 to avoid taxes and penalties
For more details, visit the Internal Revenue Service's Coverdell ESA page. Please consult with your attorney or tax advisor for additional tax-related questions. Contact us or stop in one of our branches to get started.
