Coverdell Education
Savings Account

The time to look ahead is now.

You are able to contribute to a Coverdell Education Savings Account if:

  • Modified Adjusted Gross Income (MAGI) is below $110,000 for single filers
  • Modified Adjusted Gross Income is below $220,000 for those filing jointly

Individuals with a MAGI between $95,000 and $110,000 and joint filers with a MAGI between $190,000 and $220,000 may only make partial contributions.

Contributions

  • A maximum contribution of $2,000 per child, per year until age 18.
  • For beneficiaries with special needs, contributions may be made past the age of 18.

Withdrawals

  • Funds withdrawn for qualified education expenses are not subject to taxes.
  • Funds must be distributed by the beneficiary’s 30th birthday.
  • Non-qualified withdrawals are subject to normal income tax and a 10% penalty.
  • Contributions are made with after-tax dollars
  • Earnings are tax-free
  • Withdrawals are tax-free if used for qualified education expenses