Coverdell Education Savings Accounts
Have you thought about planning for your child’s education? With tuition costs increasing on a yearly basis, now may be a good time to open a Coverdell Education Savings Account (CESA) with First Commonwealth. Parents, as well as grandparents, aunts and uncles can qualify to make regular contributions.
Coverdell Education Savings Accounts offer many features including…
- Maximum $2,000.00 annual contribution per child
- Non-individuals may contribute - includes corporations and tax-exempt organizations
- Tax-free distributions provided they do not exceed "qualified education expenses" …incurred at an eligible education institution (qualified elementary, secondary, and higher education expenses)
- Funds can be transferred to another CESA for a member of the same family provided the new beneficiary is younger than age 30 (with the exception of a special needs individual)
Planning on sending your child to college? Find out, based on the price of college today, what it may cost in the future and how much you should be saving each month to be prepared by visiting our College Calculator page.