Get a head start on saving for education by establishing an Educational Savings Account.
A Coverdell Educational Savings account works as a trust or custodial account set up solely to pay for qualifying educational expenses for a designated beneficiary. This benefit applies not only to higher education but also to qualified elementary and secondary education expenses.
Your earnings grow on a tax-deferred basis and distributions are tax-free when used for qualified educational expenses. Each year, you can contribute up to $2,000 to the account.
Benefits of an Educational Savings Account
- Free online and mobile banking
- Free e-Statement access
- Free telephone banking
- Save for education expenses while earnings grow tax-deferred
- Unused funds can be rolled over to the Coverdell ESA of another family member