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A Coverdell Education Savings Account (ESA) may be a smart investment and an important part of planning for education expenses. Save for education on a tax-favored basis with savings, money market or certificate options. We recommend that you speak with your tax advisor for details.
Parents and grandparents are often an important source of financial assistance. Earn more for the student in your life by scheduling direct deposit through your employer.
There's absolutely no risk, your earnings are guaranteed, and your savings are federally insured up to at least $250,000 by the National Credit Union Administration (NCUA), a U.S. Government Agency.
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
To open an ESA account or for more information, please call a member service representative at (888) 858-6878.
Stated contribution limits are for 2014 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.