Coverdell Education Savings Account (CESA)

College is costly — but a little pre-planning can go a long way. Set aside savings for your child’s college education in a CESA, where your dividends will grow tax-free1.

CESA Benefits

Set aside funds for your child’s education

No setup or annual fee

Dividends grow tax-free1

Withdrawals are tax-free and penalty-free when used for qualified education expenses1

Designated beneficiary must be under 18 when contributions are made

To contribute to an ESA, certain income limits apply2

Contributions are not tax deductible

$2,000 maximum annual contribution per child

The money must be withdrawn by the time your child turns 303

The ESA may be transferred without penalty to another member of the family

$100 minimum deposit to open

Coverdell Education Savings Account (CESA)

Plan for your child’s college education by setting aside savings in a CESA. Withdrawals are tax-free and penalty-free when used for qualified education expenses before he or she turns 306. As an added bonus, there’s no penalty to transfer the account to another member of the family.

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1. Qualified expenses include tuition and fees, books, supplies, board, etc.
2. Earnings withdrawn after he or she turns 30 are subject to income tax and a 10% penalty.
3. Consult your tax advisor to determine your contribution limit.