Coverdell Education Savings Accounts (CESAs)
Education accounts for your children and grandchildren help ensure that the money will be there when they are ready to pursue their goal of a higher education. The interest is 100% tax free when used by the beneficiary for qualified education expenses. It's a smart way to start planning for education.
- Summary
- No annual fee
- Interest grows tax free
- Withdrawals tax free when used for qualified education expenses*
- Contributions are not tax deductible
- $2,000 maximum annual contribution per child
- Contributions can be made until the child is 18 years old
- Funds must be distributed when recipient reaches age 30
- Contributors do not have to be related to recipient
- Individuals and non-individuals (such as companies or charities) can contribute up to $2,000 per child per year
- FDIC insured
*Qualified expenses include tuition and fees, books, supplies, board, etc.
