A little planning can go a long way toward saving for education. The Coverdell Education Savings Account is one option. While contributions are nondeductible, your beneficiary enjoys the advantages of tax-free earnings and withdrawals for qualified educational expenses.
Similar to how an IRA helps you save dedicated funds for retirement, a Coverdell Education Savings Account (CESA) helps you save for specific expenses in a child’s elementary, secondary or higher education. You can add up to $2,000 to a child’s account annually. Eligible expenses typically include tuition, books and supplies, equipment, and room and board.*
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Coverdell Education Savings Account
Like most large expenses, it pays to start saving early for higher education costs. Understanding how much you’re saving compared to anticipated education costs can help you make a plan. Use this calculator to estimate how much you should save based on anticipated college costs.
*For additional information, call our Account Services - IRA Department at 1 800 692-2274, option 8, ext. 8165, or in the Minneapolis/St. Paul metro area, call 952 997-8165.