Coverdell Education Savings Account

A Coverdell Education Savings Account is a type of Individual Retirement Account that is designed to help parents and students save for education expenses. You can contribute up to $2,000 per year, per child (income limits may reduce the amount you can contribute). Accounts can be opened with as little as $100.

  • Contributions to this account are not tax deductible, but contributions grow tax free until they are distributed
  • Distributions are tax free as long as they are less than the student's qualified education expenses, such as tuition, books and fees
  • Eligible educational institutions include most public and private primary and secondary schools, and most colleges, universities and vocational schools
  • Funds can be invested in a fixed-rate or variable-rate Time Deposit IRA and are FDIC insured up to $250,000 per individual account owner

For more information or to open your account, stop by your local Branch Office or call 1-888-612-4444.

This information should not be considered tax advice. Any tax-related decisions should be made only after consultation with your tax advisor.

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