| |
529
Savings Plan |
Coverdell
Education Savings Account (ESA) |
|
Beneficiary
Age Limits |
None |
- 18 for contributions
- 30 for withdrawals
|
|
Contribution
Level |
Vary
by State. |
Total
of all contributions may not exceed $2,000 per
year, per child until the child reaches 18. |
|
Use
of Funds |
Tuition
and other qualified educational expenses at any
accredited college or university. |
Qualified
educational expenses for grades k-12 and post-secondary
education at public and private schools (including
tuition, fees, books, and room and board). |
|
Who
Controls the Plan |
The
owner of the account. The beneficiary can be the
owner, or another individual. The beneficiary
can be changed to another family member. |
Parent
or guardian until the minor reaches adulthood.
Parent or guardian can elect to retain control
of the account. |
|
Income
Level Limits |
None |
Yes |
|
Tax
Considerations |
- Contributions are not tax deductible
- Earnings are tax-deferred and can be withdrawn
tax-free if the funds are used for qualified
expenses.
|
- Contributions are not tax deductible.
- Earnings are tax-deferred and can be withdrawn
tax-free (at the federal level and in some states)
if the funds are used for qualified expenses.
|
|
Minimum
Initial Contribution |
$50 |
$75 |
|
Benefits |
- Choose your
college from most any eligible accredited institution
of higher education.
- Choose your
investment options to match your goals and time
horizon.
- Choose your
beneficiary and change it as needed.
- Choose your contribution, from large,
lump sums to small, regular investments.
|
- Coverdell Education Savings Accounts are designed
to enable parents to pay for elementary, secondary
and higher education of the beneficiaries.
- The beneficiary (child) must use money in the
account before their 30th birthday.
They may be rolled over to a family member of
the original beneficiary.
|
Want to determine how much money you will need for
college. Use one of our calculators.
