Coverdell Education Savings

The Coverdell Education Savings Account (previously called the Education IRA) allows you to set money aside to grow tax-free to pay for primary, secondary, and/or higher education expenses.

The Coverdell Education Savings Account offers:

  • The ability to contribute up to $2,000 each year for any child under age 18, as long as you meet certain income requirements (each child's total contribution from all sources cannot exceed $2,000 annually)
  • Withdrawal of earnings and contributions is tax-free for qualifying expenses
  • The potential ability to roll over the account into a Coverdell Education Savings Account for another family member
  • The ability to make contributions anytime during the calendar year
  • The ability to make contributions until April 15 for the prior year
  • Withdrawals from this account may be used for primary, secondary, and/or higher education expenses; other expenses may also qualify