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Individual Retirement Account (IRAs) - Coverdell Education Savings Account (ESA)

A Coverdell ESA is an investment tool created for the purpose of paying for the future cost of a child's post-secondary education. The plan allows total after-tax contributions of $2,000 per year for each child until they reach the age of 18. These contributions and their subsequent earnings are tax-free when withdrawn to pay for qualified education expenses.

A qualified education expense is one that is required for the enrollment or attendance by your child at an eligible educational institution, including elementary, secondary or post-secondary institutions. These expenses include tuition, fees, books, supplies and equipment.

The Coverdell ESA does not specify that the contributor must be a member of the family. With this broad range of potential contributors, it is possible that more than one person may want to contribute for the same child. A coordinated effort should be encouraged to avoid excess contributions.

Return to IRAs.

Business Hours:

Rushford lobby:
Monday-Thursday
9:00 a.m. to 3:00 p.m.
Friday
9:00 a.m. to 5:00 p.m.
Saturday
9:00 a.m. to Noon

Rushford drive-up:
Monday - Thursday
7:30 a.m. to 4:30 p.m.
Friday
7:30 a.m. to 5:30 p.m.
Saturday
9:00 a.m. to Noon

Houston office:
Monday-Friday
8:30 a.m. to 4:30 p.m.

 
 

 

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