Coverdell Education Savings Account
Start building a brighter future for a child today.
Funds can be withdrawn tax-free for qualified education-related expenses.
Features
Learn more about eligibility
Single filers earning up to $95,000 modified annual gross income (MAGI) annually and couples earning up to $190,000 MAGI annually can contribute up to $2,000 per child under age 18 each year. Above these limits, the ability to contribute is phased out. If income exceeds $110,000 for single filers and $220,000 for joint filers, no contribution is allowed. Entities may also contribute to the Coverdell Education Savings Account without regard to MAGI limits.
More than one change in beneficiary can be made to the following family members:
|
|
It’s important to remember that even with this extended range of family members, contributions can be made only for those under the age of 18. However, transfers and rollover contributions can be made for beneficiaries under the age of 30.
For advice about your specific situation, please consult your tax advisor.
Benefits
Cover education-related expenses for elementary, secondary and higher education that include:
- Tuition
- Fees
- Books
- Supplies
- Equipment
- Special needs services
- Academic tutoring (elementary and secondary education)
- Room and board expenses
- Uniforms (elementary and secondary education)
- Transportation (elementary and secondary education)
Additional details
The Coverdell Education Savings Account must be distributed or rolled over into another Coverdell Education Savings Account for another eligible family member by the time the beneficiary reaches age 30. This change may also occur if the beneficiary has completed college and there are funds remaining or for any other reason at any time provided that the new beneficiary is under age 30.
Ready to get started?
We’re here to help