A Coverdell Educational Savings is a perfect choice for individuals who are looking to save for the educational expenses of a named beneficiary. With a Coverdell:
- Dividends are tax-deferred.
- When fund are used to pay for qualified education expenses, contributions and the earnings are distributed tax-free
- Qualified education expenses for Elementary, Secondary or Post-Secondary include:
- Tuition and fees
- Books
- Supplies and equipment
- Room and board
- Computers
- Special needs services
- Contributions up to $2,000 per year per child*
- You may transfer or rollover ESA assets to a new or existing ESA for the same child, or to an eligible family member’s ESA
- There is no limit to the number of transfers you may make
- Rollovers must be completed within 60 days of the distribution and my only occur once in a 12-month period
- You will receive a statement at least Quarterly