Skip to main content

COVERDELL EDUCATION SAVINGS PLAN

Coverdell Education Savings Account is offered through CUNA Brokerage Services, Inc.1, a broker/dealer focused on serving credit union members. CUNA Brokerage Services, Inc. is an affiliate of CUNA Mutual Group.

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.

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.2
  • 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 OUR ADVISORS

Coverdell Education Savings Account is offered through CUNA Brokerage Services, Inc.1, a broker/dealer focused on serving credit union Members. CUNA Brokerage Services, Inc. is an affiliate of CUNA Mutual Group. For more information about CUNA Brokerage Services, Inc., please visit cunabrokerage.com.


LET’S TALK

Meet with an advisor

Set up a meeting with a financial advisor.​1

Call 800.462.8328 ext. 4116, Option 2

Monday through Friday, 8 a.m. - 5 p.m.

Email

Contact us by email at investments@schoolsfirstfcu.org.

Check the background of our investment professionals on FINRA's BrokerCheck.

Disclosures
  1. Financial Professionals are registered representatives of CUNA Brokerage Services, Inc. Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, may lose value, no financial institution guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty States of the United States of America.
  2. Please consult a qualified tax professional for tax advice on your specific circumstances.

Refer Family or Friends

Invite your immediate family and eligible colleagues to join SchoolsFirst Federal Credit Union!

Not a Member?

Joining SchoolsFirst FCU is quick and easy. Apply for Membership today.