Coverdell ESA

(Education Savings Account)

Invest in a child's future

  • Save for kindergarten through graduate school
  • Earnings are tax-deferred
  • Withdrawals are tax-free for qualified educational expenses

up to $2,000/year

annual contributions

$24,061

average annual costs for attending an in-state public college1

Features of a Coverdell ESA

Eligibility information

Anyone with earned income that doesn't exceed income limits (under $110K for single filers and under $220K for joint filers) is eligible to contribute to a Coverdell ESA

Tax benefits

The plan offers federal tax-free withdrawals on qualified education expenses 

 

A full range of investments

Participants’ portfolios can include stocks, ETFs, bonds, mutual funds, and options

Eligibility Requirements - image

No annual fees and no account minimums

Transaction fees, fund expenses, brokerage commissions, and service fees may apply

Trade more, pay less

With E*TRADE, you pay $0 commission for online stock, ETF, and options trades. Here’s a quick overview of our clear, competitive per-trade pricing.

Explore similar accounts

IRA for Minors

For children with earned income

A retirement account managed by an adult for the benefit of a minor under age 18.

Custodial Account

Brokerage account for a minor

Managed by a parent or other designated custodian until the child comes of legal age.

Brokerage account

Investing and trading account

Buy and sell stocks, ETFs, mutual funds, options, bonds, and more. Enter code 'BONUS20' and get $600 when you open and fund a new account with $250,000. How it worksd1