A Coverdell ESA allows you to save for a child's educational expenses, including tuition, fees, books, supplies, and equipment. Unlike Traditional IRAs, contributions to a Coverdell ESA are never tax-deductible. However, a Coverdell ESA offers you the potential for tax free withdrawals - including earnings.

• Tax-free earnings
• $2,000 annual contribution limit per child
• Penalty-free withdrawals for qualified educational expenses
• Transferable if the child does not attend an institution of higher education
• Variable rate accounts with low minimum balance requirements
• Certificates with terms from 6 months to 5 years with a $500 minimum deposit

• Each child can receive a total of $2,000 per year in contributions from all sources. It does not make a difference if this is done in a single account or with multiple accounts designed to benefit the same child.
• A contributor may be limited in the amount of their contribution if their modified adjusted gross income exceeds $95,000 for single filers or $190,000 for joint filers. Above these income levels, the ability to contribute is phased out. If the contributor's income exceeds $110,000 for single filers or $220,000 for joint filers, he or she cannot make ESA contributions.

ESA contributors do not have to be family members. With this broad range of potential contributors, it is possible that more than one person may want to contribute for the same child. A coordinated effort should be encouraged to avoid excess contributions.

Simply visit any one of our branches and a Member Service Representative will be happy to meet with you.