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
KIS does not give tax or legal advice. The comments regarding tax treatment in this material simply reflects our understanding of current interpretations of tax laws as they apply to the products covered in this material. Since tax laws are always subject to interpretation and possible changes, we recommend that you seek the counsel of an attorney, accountant or other qualified tax advisor regarding these matters as it applies to your particular situation.
Investment products are offered through Key Investment Services LLC (KIS), member FINRA/SIPC. Insurance products are offered through KeyCorp Insurance Agency USA, Inc. (KIA). KIS and KIA are affiliated with KeyBank National Association (KeyBank).
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