Help a child or grandchild save for future education expenses.
A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for future education expenses.
- Can be established for a child under age 18
- Contributions are not tax-deductible; amounts deposited grow tax-free until distributed.
- Attractive fixed rates in a choice of 6-60 month terms available with a $1,000 deposit, or an 18-month variable rate with no minimum deposit.
- Maximum annual deposit of $2,000
- The beneficiary will not owe tax on the distributions if they are less than a beneficiary’s qualified education expenses at an eligible institution. This benefit applies to qualified higher education expenses as well as qualified elementary and secondary education expenses.
For complete information about Coverdell Education Savings Accounts, visit irs.gov.