(Formally known as Education IRA)
In 1998, the Internal Revenue Service introduced the Education IRA, which was renamed in 2001
to honor the late Paul Coverdell, former senator from Georgia. Education IRAs were created
to help individuals save for a child’s higher education expenses.
You may establish an Education IRA on behalf of a minor under the age of 18 if your
income does not exceed $110,000 if you are single or $220,000 if you are married.
Members may contribute up to $2,000 annually per child. Withdrawals of earnings and
contributions are tax free if used for higher education expenses. All funds must be
completely distributed by age 30.
Coverdell Education Savings Account Options
The SchoolsFirst FCU Coverdell Education Savings Account is a certificate that offers a
fixed-rate of return for a specified term, and deposits are
by the National Credit Union Administration, up to $100,000see
features and rates