You realize the importance of education, but how do you afford it?  Parents and grandparents are an important source of financial assistance.  We can help the student in your life with a Coverdell Education Savings Account (ESA).  Save for education expenses on a tax-favored basis with Savings, Money Market or Certificate options.  Check out our competitive rates.

Here’s how it works:

• Contribute up to $2,000 per year, per child
• Contributions are made with after-tax money
• Earnings are tax-free
• Withdrawals for qualified education expenses are tax-free
• Funds can be used for qualified higher education as well as qualified K-12 tuition and expenses
• The beneficiary (child) must be 17 or under to be eligible for an ESA
• Low $100 certificate minimums for members 23 and under

For more detailed information about ESAs, visit the IRS website and search on Coverdell Savings Accounts.

Help your children or grandchildren learn about smart money habits in our Education Center.

Our member service representatives are ready to answer your questions and to open an education savings account for the future student in your life.  ESA accounts cannot be opened on-line.  Please call a member service representative at (888) 858-6878, ext. 6231.

Pacific Service Credit Union cannot give financial, tax or legal advice regarding Coverdell Education Savings Accounts.  Please consult a tax advisor for more information about these accounts to determine if an ESA is appropriate for you.  Stated contribution limits are for 2008 tax year and may change for future tax years.  Fees may reduce earnings and a penalty may be imposed for early withdrawals. Additional penalties may be assessed by federal and state tax authorities under regulations governing IRAs.