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Coverdell Education Savings Account

Coverdell Accounts are available as money market accounts, certificates, or an IRA Savings account — which means flexibility to choose what works best for you.

A Coverdell Education Savings Account is a tax-advantaged account that helps you save for your kids’ education expenses. You provide the savings consistently year after year, so when Trevor is ready to pledge Alpha-Kappa-Whatnow, and Katie discovers she didn’t receive that speed-chess scholarship after all — you’re ready.

How do I qualify for a Coverdell Education Savings Account?

  • Meet the income qualifications: adjusted gross income must be below $110,000 for single or $220,000 for married filing jointly
  • Contribute no more than $2,000 annually per individual beneficiary
  • Use benefits for elementary, secondary or even higher education expenses at an eligible educational institution
  • Enjoy tax-free distributions when you use them for qualified education expenses such as tuition, books, fees, etc. (consult your tax advisor for details)
  • Designate a beneficiary who is under age 18 or is special needs
  • Distribute the balance of the account before the beneficiary reaches age 30 or roll over to another Coverdell account for another family member

How can I save with a Coverdell Education Savings Account?

Coverdell Accounts are available as money market accounts, certificates, or IRA Savings — which means flexibility to choose what works best for you.

  • An IRA money market account offers you the option of adding contributions anytime you want (made even simpler with automatic transfers from your checking account).
  • An IRA certificate lets you make a lump sum deposit of $250 or more to open your account and lock in the rate for a specified term.
  • An IRA savings account is a flexible way to start saving without giving up access to your money.
  • Consumers Financial Group Financial Professionals offer mutual funds plus other investment options if you’re looking for a potentially higher rate of return. Set up an appointment with Wealth Management today.