Coverdell Education Savings Account
The Coverdell Education Savings Account (CESA) is a great way to save for your children's education.
With tuition and other higher education expenses rising each year, it's more important than ever to find a college savings plan that works for you.
Let your contributions grow tax-free to help fund a beneficiary's (child) primary and post-secondary education expenses.
The purpose of a CESA is to fund the future cost of a beneficiary's (child) primary and post-secondary education at an eligible school, college, or vocational school.
Non-deductible contributions of up to $2,000 annually per designated beneficiary under age 18. The beneficiary may be a child, grandchild, or another eligible relative.
Distributions for qualified higher-education expenses, such as tuition, fees, books, supplies, equipment, and other related expenses, are both tax-free and IRS penalty-free.
Contributions must stop when the beneficiary reaches the age of 18, and funds must be distributed by age 30. If funds are not distributed, they can be rolled over into a new Coverdell account for the benefit of a different qualifying relative.
To learn more about this tax-free, IRS penalty-free savings option, contact Columbia Bank to connect with a representative. Visit a local branch or give us a call and begin saving with the Coverdell Education Savings Account today.