Coverdell Education Savings Account
College costs are rising fast. To prepare your family financially for higher education investments, it’s prudent to take advantage of a variety of savings programs as soon as possible. A Coverdell Education Savings Account (CESA) is a smart addition to your savings plan.
CESAs are federally-sponsored education vehicles to set aside savings for children age 18 and younger or for beneficiaries with special needs. Although CESA contributions are not tax-deductible, earnings can be withdrawn tax-free if assets are used for qualified educational expenses.1 Up to $2000 per child per year may be contributed to a CESA.
Advantages of CESAs include:
- The potential for tax-free earnings1
- Flexibility in investment options
- Use of assets for elementary, secondary, or higher education expenses
- Liberal rules for children with special needs
SAFE currently offers the following CESA options:
1 Consult your tax advisor regarding potential tax benefits.