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The money must be withdrawn by the time your child turns 30³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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CESA Frequently Asked Questions (FAQ) Brochure (PDF)

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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 Earnings withdrawn after he or she turns 30 are subject to income tax and a 10% penalty.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.