College Savings

Parents, grandparents, kids, or all three can start saving with a CEFCU Coverdell Education Savings Account (ESA).

• Elementary, secondary, college education expenses
• $2,000 per year for each child under 18
• Tax-free qualified withdrawals ^{footnote 1}
• Income limits ^{footnote 1}

Funds must be withdrawn by the time the child turns 30.

Contact CEFCU to open your ESA today.

College Savings FAQs

• How long can funds remain in an Education Savings Account?
  

  Funds must be withdrawn by the time the child turns 30.

• What expenses qualify?
  

  Use your Education Savings Account funds for elementary, secondary, or college education expenses.

• Are there income limits on an Education Savings Account? 
  

  Yes, but please check with your tax advisor for specifics. You can also visit IRS Publication 970 on the irs.gov website for more information. 

• What’s the annual contribution limit for an Education Savings Account?
  

  $2,000 per year for each child under 18.

• Are Education Savings Account deposits tax deductible?
  

  No. However, qualified withdrawals are tax-free. Please check with your tax advisor for specific guidelines.

• Who can open an Education Savings Account?
  

  Parents, grandparents, or kids.