Planning for the future requires a sensible strategy focused on your goals. When you're saving for education expenses and retirement, our Individual Retirement Accounts (IRA) provide solutions with solid growth opportunities. No matter what your current income level, you can find a retirement plan for your future. Each option provides different benefits, so consult your tax advisor for complete details about tax advantages.
What is an ESA?
An Education Savings Account (ESA), also known as a Coverdell ESA, is a trust or custodial account set up by a parent or guardian of a child (known as the beneficiary), that is used to pay for education expenses for elementary, secondary and even higher education for that particular beneficiary. There are a few benefits and restrictions which you should know when considering setting up an ESA.
The Basics of the Coverdell Education Savings Accounts (ESA):
- Coverdell ESA may be used to pay for qualified student education expenses for grades K-12 and higher education
- Account(s) must be set up and all contributions made before the beneficiary turns 18, unless the account is for a special needs beneficiary
- Contributions of up to $2000 per beneficiary per year
- Distributions are tax free as long as they do not exceed the qualified educational expense(s)
Setting up an ESA
Getting started is as easy as following one of the links above.
- After following the link, Select "Open an IRA/HSA"
- Then select the account type Eduction Savings Account (ESA)
- You will need your SSN and the SSN of any beneficiaries you are adding
- New ESA accounts are typically set up within 1 business day