Coverdell Education Savings Account (CESA)

A Coverdell Education Savings Account is a tax-free educational savings account established for the benefit of a child under the age of 18.

Qualifications:

• There are no age requirements for the contributor to open a CESA for a minor.
• The contributor does not have to have earned income.
• If the contributor does have earned income, phaseout levels have been established by the IRS.

 Contributions:

• Individuals may make a nondeductible contribution of a maximum amount of $2000 annually per child as long as the accountholder does not fall into the phase out levels.
• This contribution does not reduce the accountholder’s annual contribution limit to an IRA for himself or herself.
• Contributions to a CESA are not subject to gift tax and the earnings will accumulate tax-free.

FOR DETAILED INFORMATION ABOUT ANY OF OUR ACCOUNTS, PLEASE CONTACT US FOR A COMPLETE ACCOUNT DISCLOSURE.