Coverdell Box With the rapidly rising cost of education, a Coverdell Education Savings Account (ESA) is a great option to help save for your child’s education expenses. ESAs were created to help pay for children’s education expenses, such as tuition, books, fees, supplies, equipment, etc.

Benefits

  • No minimum age to open an ESA
  • Earns dividends
  • Can be used for qualified elementary and secondary education expenses
  • Contributions to can be made by anyone
  • Tax-free and penalty-free withdrawals for qualified education expenses
  • Ability to withdraw funds at any time

Requirements

  • Account must be opened by age 18
  • Contributions may be made until the age of 18
  • Funds are for education purposes only
  • Funds must be used by age 30 (transfer of funds to a family member after age 30 is permitted)
  • Maximum contribution of $2,000 per child, per year
  • Only one “responsible individual” oversees the account