Coverdell Education Savings Account
The Coverdell Education Savings Account (CESA) is a non-deductible account (share or certificate of deposit) that offers tax-free savings for the education expenses of a designated child beneficiary.
Texans' CESA features:
- No service charge
- Tax-free earnings* - earnings will grow tax-free if used for qualified education expense
- 50 minimum to open Share CESA
- 1,000 minimum to open CD CESA
- Contribution limit of $2,000 per year, per child
Qualified Education Expenses
Any withdrawal from a CESA for one of the following reasons may be tax-free:
- Tuition, fees, academic tutoring, books, supplies, and other necessary equipment
- Room and board, uniforms, transportation, and supplementary items or services provided by the school
- Purchase of any computer-related equipment for the child
Eligibility Requirements
Anyone may contribute to a CESA as long as the designated child is under 18 and the contributor's Modified Adjusted Gross Income (MAGI) does not exceed allowed limits. Check with a Texans representative or your tax advisor for more details.
For more information on our Texans Coverdell Education Savings Accounts, please contact us at 972.348.2000 (800.843.5295) or visit your nearest Texans branch.
*Be sure to consult your tax advisor.
Nothing herein should be construed as legal advice. See an accountant or legal professional to see if this product is right for you.
