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Coverdell Education Savings

Invest in Your Child’s Education

FROM KINDERGARTEN TO COLLEGE

A Coverdell Education Savings Account provides a tax-free safe place to grow competitive dividends

  • No setup or annual fee
  • Dividends grow tax-free
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses*
  • Designated beneficiary must be under 18 when contributions are made
  • To contribute to a Coverdell ESA, certain income limits apply**
  • Contributions are not tax deductible
  • $2,000 maximum annual contribution per child 
  • The money must be withdrawn by the time he or she turns 30*** 
  • The ESA may be transferred without penalty to another member of the family 
  • $50 minimum deposit to open

*Qualified expenses include tuition and fees, books, supplies, room & board, etc. **Consult your tax advisor to determine your contribution limit. ***Those earnings are subject to income tax and a 10% penalty.

SUNY Fredonia Federal Credit Union 2024