Education Savings

Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow interest and also financial confidence for a new stage in life.

• $100 minimum deposit to open
• No setup or annual fee

Key Benefits

• Tax-free growth when funds are used for qualified education expenses*.
• Flexible use — covers both K–12 and college costs.
• Transferable funds — unused money can go to another eligible family member.

Beneficiary Rules

• Must be under 18 when the account is opened (except for special needs).
• Account must be designated as a Coverdell ESA.

Contribution Details**

• Up to $2,000 per year per beneficiary across all Coverdell accounts.
• Contributions are not tax-deductible and must be made in cash.
• Individuals, businesses, and trusts can contribute.

Using the Funds

• Withdrawals are tax-free for qualified education expenses.
• Applies to K–12 and post-secondary education.

Timing & Reporting

• Funds must generally be used by age 30 (special needs exception)***.
• Remaining funds can be transferred to another eligible family member.
• Withdrawals are reported on IRS Form 1099-Q.