• Education Savings: Set aside funds specifically for your child's educational expenses.
• Tax-Free Growth: Dividends grow tax-free, and withdrawals are tax-free and penalty-free when used for qualified education expenses.¹
• Beneficiary Requirements: The designated beneficiary must be under 18 when contributions are made.
• Contribution Limits: Contribute up to $2,000 annually per child, with certain income limits applying.
• Withdrawal Age: Funds must be withdrawn by the time the beneficiary turns 30.
• Family Transfers: Transfer the ESA to another family member without penalty if needed.
• No Deductible Contributions: Contributions are not tax-deductible.
• Minimum Deposit: Open a Coverdell ESA with a minimum deposit of $500.

Additional Notes:

1. Qualified expenses include tuition, fees, books, supplies, and board.

2. Consult a tax advisor to determine your contribution limit.

3. Earnings are subject to income tax and a 10% penalty if not used for qualified expenses.