'Save smart' with a Coverdell Education Savings Account from First Fed!
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Coverdell Education Savings Account (ESA)

A First Federal Coverdell Education Savings Account (ESA) is an account created to help parents and students save for educational expenses.



A Coverdell Education Savings Account (ESA)* is an account created as an incentive to help parents and students save for education expenses.


Summary

  • Total contributions for account beneficiary cannot be more than $2,000 in any
    year, no matter how many accounts are established
  • Beneficiary is someone under age 18 or is a special-needs beneficiary
  • Contributions are not deductible, but amounts deposited grow tax-free until
    distributed
  • Beneficiary will not owe tax on the distributions if they are less than a beneficiary’s
    qualified education expenses at an eligible institution
  • This benefit applies to higher education expenses as well as to elementary and
    secondary education expenses.
*Consult your tax advisor for more information on deductibility, income and contribution limits.

 

 

 

 

 

 

 

 

Current Rates
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