Coverdell Education Savings Accounts

A Coverdell Education Savings Account provides convenient tax-advantaged savings for elementary school, high school or higher education expenses. Earnings accumulate tax-free, and all distributions are completely tax-free when used for qualified expenses such as tuition, room and board, fees, supplies, tutoring, special needs services-even educational computer equipment and internet access. You can roll unused balances into another education savings account to benefit another family member. Credit Union ONE’s Coverdell Educational Savings account is insured by the NCUA.  Choose from a fixed-rate, fixed-term certificate, a savings account, or about other investment options. We're here to make saving for education simple.

Eligibility
  • Designated beneficiary (child) must be under the age of 18
  • Contributors may be individuals (parent, grandparent, aunt, uncle, etc.) or entities (non-individuals)
  • Individual contributors must meet certain income thresholds based on Modified Adjusted Gross Income (MAGI)
  • For entities (non-individuals), MAGI doesn't apply
  • Consult your tax advisor

Contribution limits
  • Annual after-tax contribution of up to $2,000 per designated beneficiary under the age of 18
  • Beneficiaries with special needs may receive funding contributions after age 18

Withdrawal Guidelines*
  • IRS penalty-free distributions for: primary, secondary, technical, college, or post-graduate education expenses for the designated beneficiary

*Withdrawals may have additional penalties. Always consult your tax advisor.

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