Savings for Higher Education
Savings for Higher Education
Given the rising costs of a college education, it's never too early to begin saving for your child.
coverdell education savings account
A Coverdell education savings account (ESA) is an account created as an incentive to help parents and students save for education expenses. ESA's are a type of tax-advantaged savings account created by the Taxpayer Relief Act of 1997, specifically for paying qualified higher education expenses.
key features
- $2,000 annual limit per beneficiary
- contributions are non-deductible
- qualified distributions are tax-free
- virtually anyone can contribute
- contributions must stop at beneficiary's 18th birthday, with the exception of special needs children
- funds must be disbursed or rolled over by beneficiary's 30th birthday
Connect with us today to learn more and/or to open an ESA and start saving now.
529 college savings plan
A 529 college savings plan is a tax-advantaged way of saving for higher education that anyone can contribute to. The student uses the 529 account for qualified education expenses, such as tuition, room and board, books, etc. Learn more about a 529 college savings plan or visit our Retirement & Investment Center to open an account for your child today!