SCHOOLSFIRST INVESTMENT SERVICES
COVERDELL EDUCATION SAVINGS PLAN
When it comes to tuition, every penny counts. A Coverdell Education Savings Account is ideal for parents starting early to set aside money for multiple children with hopes to attend college.
Unlike a 529 Plan, a Coverdell ESA isn’t just for higher education costs. Tax-free withdrawals can be made for certain elementary, secondary, or vocational school expenses too.
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How it works
- Open one with as little as $100.
- Make after-tax annual contributions up to $2,000 until your child turns 18.
- Set up automatic contributions and increase amounts at any time.
- Use a Coverdell alone or in addition to other college savings.
- Watch your savings grow tax-deferred.1
- Make tax-free withdrawals as long as you use the money for qualified education expenses.
- Make withdrawals until the beneficiary reaches age 30.
How to qualify
- Be a parent, family member, or legal guardian of a student under age 18.
- Earn less than $95,000 if single and $190,000 if married filing jointly to contribute the full amount.
- Earn $95,000 - $110,000 if single and $190,000 - $220,000 if married filing jointly to make partial contributions.
- No contributions allowed for income over $110,000 if single or $220,000 if married filing jointly.
- Some allowances may apply for parents of special needs children.
Saving for college can be intimidating, especially if you’re worried you have to save the full amount of tuition, but it doesn’t have to be. Our licensed financial advisors can help you devise a plan you can afford.
Meet with an advisor
Set up a meeting with a financial advisor.
Call 800.462.8328 ext. 4116, Option 2
Monday through Friday, 8 a.m. - 5 p.m.
Contact us by email at firstname.lastname@example.org.
Securities are offered through LPL Financial (LPL), a registered broker-dealer(member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. SchoolsFirst Federal Credit Union and SchoolsFirst Investment Services registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using SchoolsFirst Investment Services and may also be employees of SchoolsFirst Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, SchoolsFirst Federal Credit Union or SchoolsFirst Investment Services. Securities and insurance offered through LPL or its affiliates are:
Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value
The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.
- This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.