Education Savings Account

Are you worried about whether you will be able to help your children or (perhaps) grandchildren with college expenses when the time comes? Start now and be prepared with a Coverdell Education Savings Account (formerly known as an Education IRA.)

Up to $2,000 can be contributed to a Coverdell Account while the child is age 17 or younger. Unfortunately, the contributions aren’t tax deductible; however, they and their earnings can be withdrawn tax-free as long as they are used to pay eligible schooling expenses.

Any adult (parents, grandfolks, godparents or friends) may put money in a child’s Coverdell Account; however, the total put in the account from all sources cannot exceed $2,000 per year.

Money to be used for college expenses may include: pre-college expenses, tuition, room & board, books, computers and much more.