Coverdell Educational Account*

Save Toward A College Education

This is a great opportunity to save toward the costs of a higher education. Best of all, it's available to everyone: parents, grandparents, other relatives, friends, and even minors (with earned income) can set up an account for any designated beneficiary under age 18.

Here are the specifics:

• You can make nondeductible contributions of up to $2,000 per child each tax year. The accumulation of interest and withdrawals are tax-free as long as the funds are used for qualified, higher education costs.
• If the beneficiary is not going to use the money for education expenses, it must be distributed by age 30. Funds can be transferred from one child's account to another child in the family.
• The contributions to this account do not count toward your $3,000 single taxpayer or $6,000 married taxpayer (filing jointly) IRA contributions. You can save for a child's education and maximize your own IRA every tax year.
• The contribution year runs from January 1 to December 31 (for tax filing information).

*Formerly the Education IRA.

Truth In Savings Disclosure

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