Coverdell Education Savings Account (CESA)
Save for a child's education and future.
Make sure that when it's time for your kids to go to college, they have the funds to pay for it! Take advantage of a savings account where your dividends grow tax-free.
This account allows annual contributions every year until the recipient hits age 18. There are no setup or annual fees, and you don't even have to be related to recipient to contribute. Start saving for their future today!
- Set aside funds for your child's education
- No setup or annual fee
- Dividends grow tax-free
- Withdrawals are tax-free and penalty-free when used for qualified education expenses*
- Designated beneficiary must be under 18 when contributions are made
- To contribute to an ESA, certain income limits apply**
- Contributions are not tax deductible
- Contributors do not have to be related to recipient
- $2,000 maximum annual contribution per child
- The money must be withdrawn by the time he or she turns 30***
- The ESA may be transferred without penalty to another member of the family
- No minimum deposit to open
*Qualified expenses include tuition and fees, books, supplies, board, etc.
**Consult your tax advisor to determine your contribution limit.
***Those earnings are subject to income tax and a 10% penalty