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Coverdell Education Savings Account (ESA)

Just because your children still are in diapers doesn't mean it's too early to start saving for college.

A Coverdell education savings account offers you the potential for tax-free withdrawals for qualified expenses. Parents, grandparents, family, friends, can contribute as long as their income meets the limits.

More information and calculators are available in our online retirement central.


You can contribute up to $2,000 per child per year. You can make contributions of less than the full amount if you are:

  • Single filer with modified adjusted gross income (MAGI) $95,000 - $110,000
  • Joint filer with MAGI $190,000 to $220,000

You cannot contribute to a Coverdell in the same year you contribute to a state prepaid tuition plan. Contributions to a Coverdell Account can be made until the child reaches age 18.

We offer both Coverdell savings accounts and Coverdell certificates.


Funds can be withdrawn at any time. However, to avoid tax consequences from the withdrawal, you must use the funds to pay for qualified educational expenses for your child before he or she reaches age 30.

Qualified expenses include tuition, fees, books, elementary and secondary school expenses, computer technology or equipment--even online access--that the beneficiary uses while in school, and equipment required for enrollment or attendance at nearly any post-secondary educational institution. Certain room and board expenses also may qualify.

Automatic payroll deduction at your credit union can make contributing to a Coverdell easy.