Coverdell Education Savings Account

 

Fast Facts about the Coverdell ESA:

  • Contribute up to $2,000 per year for each beneficiary/child

  • Contributions are not tax deductible; however, contributions grow tax free and distributions are non-taxable if used for qualified education expenses

  • The person responsible for the account controls the investment of the assets (stocks, bonds, mutual funds, etc.) until the beneficiary reaches age 18.

  • Available for families with Adjusted Gross Income (AGI) of less than $220,000*

  • Qualified expenses include the following:

    • Elementary, secondary and post-secondary tuition and fees

    • Academic Tutoring

    • Uniforms

    • Transportation

    • Computer technology used for educational purposes

  • Contributions may be made until April 15th and still apply to the previous year

Coverdell ESAs can be easily set up through your bank or investment brokerage with minimal paperwork


Contact your financial advisor today for more information!
 

*Note:  For families whose AGI exceeds this level, parents can gift $2,000 to their children annually and the children can contribute to the ESA.

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