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 college2

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

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