College Savings

Start planning for your child's future. Open

an Education Savings Account.

College Savings

A Coverdell Education Savings Account (ESA) from CEFCU can help you
fund a child's education.

Anyone — parents, grandparents, or friends — can make a contribution for a child under 18. Qualified withdrawals are tax free and may be used for:

  • Public schools
  • Private schools
  • Religious schools
  • Elementary, secondary, and post-secondary school expenses

Uniforms, tuition, tutoring, and transportation are among the approved expenses. Check with your tax advisor for details regarding your specific situation.

Start saving for your child's education today. For more information, check out the College Savings FAQs or contact CEFCU.

Saving for College

Each year, college expenses rise, these tips are helpful when planning and saving for college.

Frequently Asked Questions

Are ESAs tax deductible?

No, but qualified withdrawals are tax free as long as they do not exceed the education expenses for that year.

What institutions qualify?

Elementary, secondary, or college-level expenses to public, private, or religious schools. The child does not have to attend the eligible institution full time.

What is the income limit on contributing to an ESA?

A single taxpayer income limit is $95,000, joint filers income limit is $190,000. The contribution is phased out on a sliding scale for individual taxpayers with adjusted gross income between $95,000 and $110,000 and joint filers with adjusted gross income between $190,000 and $220,000.

What is the annual contribution limit.

You may contribute up to $2,000 annually for a child under age 18.

Are transfers permitted?

Only transfers to and from other ESAs are permitted. You may not execute a rollover or transfer of qualified retirement plan dollars to an ESA. However, prior to a child reaching age 30, unused funds may be transferred tax-free to an ESA established for another eligible member of the child's family.

How long can funds remain in an ESA?

Funds must be withdrawn by the time the child is age 30.

Who may contribute to an ESA?

Anyone may contribute to a child's ESA. You do not have to be that child's parents, although phase-out limitations apply based on the adjusted gross income. Consult your tax advisor for details pertaining to your specific situation.

Will my CEFCU ESA be federally insured?

You can enjoy federal insurance up to $250,000 by the National Credit Union Administration (NCUA) on CEFCU ESAs.

Start saving for your child's education today. For more information, contact CEFCU.

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