With a Coverdell Education Savings Account (ESA), you may save up to $2,000 per child per year. Contributions are made with after-tax dollars while earnings and withdrawals are tax-free. The account offers versatility, but funds must be used for qualified educational expenses to receive the tax-free benefits.
Benefits of a Coverdell ESA:
- Tax-free earnings and withdrawals used for qualified educational expenses
- Family members may contribute, up to the annual limit
- Transfer funds from one account to another within the same family
- Continue saving each year until the child reaches 18
- Enjoy a flexible use of funds
A Coverdell ESA is versatile and can be used for a broad range of educational needs. Funds can be applied to college, university, and public or private K-12 education expenses including tuition, tutoring, room and board, and even computer or other technology needs.
Open or Manage Your IRA
Visit the 1st Ed Credit Union IRA Service Center today. You’ll love this useful tool – you can plan for retirement, open an IRA, and monitor or make adjustments to an existing IRA.
IRA Accumulation (Traditional,Roth,Education)
*APY indicates Annual Percentage Yield. Contact any employee for information on applicable fees and terms. Fees could reduce earnings on the account.
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Your savings are federally insured to up to $250,000 and backed by the full faith and credit of the United States Government by National Credit Union Administration (NCUA), a U.S. Government Agency.