The Coverdell ESA is a savings plan created for the purpose of paying a student’s qualified educational expenses.

The Coverdell ESA is a savings plan created for the purpose of paying a student’s qualified educational expenses.

Overview

The Coverdell ESA is a savings plan created for the purpose of paying a student’s qualified educational expenses. These can include, but are not limited to:

  • tuition
  • books
  • uniforms

Similar to a 529 plan, your money is tax-deferred, allowing your fund to potentially grow faster.

Details

Contributions to a Coverdell ESA are not tax-deductible. In addition, contributions are allowed for individuals under the age of 18.

Distributions from a Coverdell ESA may be tax-free, but they must be used to pay for qualified educational expenses.

With a Coverdell ESA account, you can invest in a wide variety of products including stocks, bonds, and mutual funds.

Benefits

  • A retirement savings plan that allows an individual to contribute earnings until they are withdrawn.
  • Contributions are subject to annual limits depending on the age of the account owner and may or may not be deductible depending on the individual’s circumstances.
  • Earnings accumulate tax deferred until distributed to you at which time the earnings are subject to tax upon withdrawal.
  • A spouse may contribute to a separate account subject to the same limits.
  • Withdrawals made prior to age 59½ are subject to a 10% penalty unless certain special circumstances apply.
  • Distributions must begin by the account owner’s required beginning date (RBD), which is April 1 following the year that the account owner reaches age 70½.
  • Once the account owner reaches age 70½, he or she must withdraw at least a minimum amount called an annual Required Minimum Distribution (RMD).
  • If an account owner fails to withdraw the full amount of the RMD annually, or fails to withdraw the RMD, there is a 50% tax penalty that may be imposed by the IRS on the amount not withdrawn.

Maximum Contribution

The maximum contribution per year is $2,000 per designated beneficiary

Next Steps

If you know which IRA is right for you, open an account and complete the application. If you prefer to speak to us first, please schedule some time to discuss your investment goals and objectives.

Overview

The Coverdell ESA is a savings plan created for the purpose of paying a student’s qualified educational expenses. These can include, but are not limited to:

  • tuition
  • books
  • uniforms

Similar to a 529 plan, your money is tax-deferred, allowing your fund to potentially grow faster.

Details

Contributions to a Coverdell ESA are not tax-deductible. In addition, contributions are allowed for individuals under the age of 18.

Distributions from a Coverdell ESA may be tax-free, but they must be used to pay for qualified educational expenses.

With a Coverdell ESA account, you can invest in a wide variety of products including stocks, bonds, and mutual funds.

Benefits

Tax advantages

  • Earnings grow tax-deferred
  • Distributions are tax-free
  • Gift and estate tax benefits

Maximum Contribution

The maximum contribution per year is $2,000 per designated beneficiary

Next Steps

If you know which IRA is right for you, open an account and complete the application. If you prefer to speak to us first, please schedule some time to discuss your investment goals and objectives.
Overview

Overview

The Coverdell ESA is a savings plan created for the purpose of paying a student’s qualified educational expenses. These can include, but are not limited to:

  • tuition
  • books
  • uniforms

Similar to a 529 plan, your money is tax-deferred, allowing your fund to potentially grow faster.

Details

Details

Contributions to a Coverdell ESA are not tax-deductible. In addition, contributions are allowed for individuals under the age of 18.

Distributions from a Coverdell ESA may be tax-free, but they must be used to pay for qualified educational expenses.

With a Coverdell ESA account, you can invest in a wide variety of products including stocks, bonds, and mutual funds.

Benefits

Benefits

Tax advantages

  • Earnings grow tax-deferred
  • Distributions are tax-free
  • Gift and estate tax benefits

Maximum Contribution

Maximum Contribution

The maximum contribution per year is $2,000 per designated beneficiary
Next Steps

Next Steps

If you know which IRA is right for you, open an account and complete the application. If you prefer to speak to us first, please schedule some time to discuss your investment goals and objectives.

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