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Coverdell Education Savings Account
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Coverdell Education Savings Account

Plan Ahead for Your Child's Education.

A Coverdell education savings account (ESA) allows you to make nondeductible contributions on behalf of a child each year until they are 18 years old. The earnings generated on the ESA contributions remain tax-deffered in the account. When a child uses the funds to pay for qualified education expenses, the contributions and the earnings are distributed tax-free.

Talk to a Financial Service Representative to open a Coverdell Education Savings Account for the young person in your life!

Qualified Education Expenses

  • Tuition and fees
  • Books
  • Supplies and equiptment
  • Room and board
  • Computers
  • Special needs services


Anyone can contribute to a child's ESA, as long as their modified adjusted gross income (MAGI) falls below or within the income limits for the year (see below). Those who are eligible can contibute to more than one ESA on behalf of multiple children, not to exceed the yearly limit of $2,000 per child. Also, no individual child can recieve more than $2,000 total per year in ESA contributions.

Modified Adjusted Gross Income Limits

  • Single Filer: $95,000 - $110,000
  • Married, Joint Filer: $190,000 - $220,000


If a child does not use the ESA funds or does not transfer or roll over the ESA funds to an eligible family member (see below) by the time they are 30 years old, the ESA will be distributed. The child must include the distributed amount in gross income for the year and pay a penalty tax on the earnings, if the distribution is not used to pay for qualified education expenses.

Eligible Family Members

Eligible family members must be under the age of 30 and include the child's, father, mother, stepfather, stepmother, or in-law, spouse, brother, sister, stepbrother, stepsister, or in-law, child or descendent of child, stepchild, eligible foster child, or in-law, first cousin, aunt, uncle, niece, nephew, or the spouse of the childs niece or nephew.

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