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Coverdell Education Savings Account

Looking for a way to save for your child's education? You can start saving for your child's education today with an Education Savings Account (ESA).


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 $110,002 for single filers or $220,002 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.

Open an Education Savings Account Today!

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

For more information about paving the road to success for your child, please ask one of our Member Service Representatives for more details. You might also consider seeking advice from a competent tax advisor.

At People First FCU we are improving the accessibility and usability of our website for our members and potential members. Our efforts are based on the standards for Web Content Accessibility Guidelines (WCAG) 2.1. It is our policy to ensure that persons with disabilities have full and equal opportunity to benefit from our services on our website and on other online services. If you have any questions or need help with any content on our website or online services, please contact us at or by calling our Member Service Center at 610.797.7440.

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Your savings are federally insured to at least $250,000 by the National Credit Union Administration and backed by the full faith and credit of the U.S. Government.

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