Education Savings Account

Most parents want to help their kids prepare for the future, whether than means going to college or learning a trade. But many parents worry about how they’ll pay for it. Fortunately, there’s something called a Coverdell Education savings account that can be a big help.

Here’s how it works: you (a family member or a nonfamily member¹) make contributions into your child’s Coverdell Education savings account. The contributions aren’t tax deductible, but dividends grow on a tax-deferred basis. When your child is ready, withdraw funds for qualified educational expenses.¹

A Coverdell Education savings account is a great way to alleviate some of the stress of preparing financially for your child’s future. And, at Family Trust, if we can do anything to help alleviate financial stress for our members, we will. Because here, you come first.

Here’s everything you get with a Coverdell Education savings account:

• Dividends grow tax-deferred
• Withdrawals are tax-free when used for qualified education expenses¹
• Child must be under 18 when contributions are made
• Must be eligible to contribute to an ESA, and contribution limits apply¹
• Contributions are not tax deductible
• Unused ESA funds may be eligible to be transferred to another family member¹
• No opening, maintenance, or annual fee²
• $100 minimum deposit to open³

Additional Information

Coverdell Education Savings