Coverdell Education Savings (ESA)

A Coverdell Educational Savings is a perfect choice for individuals who are looking to save for the educational expenses of a named beneficiary. With a Coverdell:

  • Dividends are tax-deferred.
  • When fund are used to pay for qualified education expenses, contributions and the earnings are distributed tax-free
  • Qualified education expenses for Elementary, Secondary or Post-Secondary include:
    •  Tuition and fees
    •  Books
    •  Supplies and equipment
    •  Room and board
    •  Computers
    •  Special needs services
  • Contributions up to $2,000 per year per child*
  • You may transfer or rollover ESA assets to a new or existing ESA for the same child, or to an eligible family member’s ESA
  • There is no limit to the number of transfers you may make
  • Rollovers must be completed within 60 days of the distribution and my only occur once in a 12-month period
  • You will receive a statement at least Quarterly