Coverdell Education Savings
Tax breaks make this a smart way to cover tuition and other costs
The cost of attending college - as well as private elementary and secondary schools - continues to rise. The good news is there are ways to lighten the burden. With a Coverdell Education Savings Account, you can start setting aside money when your scholar-to-be is still a newborn or toddler. As the years pass, your savings will steadily grow with the help of steady interest payments and tax benefits.
- Tax-free distributions when used for qualified education expenses, such as tuition, room and board, fees, supplies, tutoring, special needs services, and computer equipment and online access
- Unused funds can be rolled into education accounts of other family members
- Compatible with other education savings tools, such as 529 Plans
- Deposits insured up to $250,000 per ownership category by the National Credit Union Administration (NCUA)
- Consult your financial advisor for more detailed information