Educational Savings Account
Since 1980, the cost of college tuition has risen nearly eight times faster than wages. Even pre-college education has become a major investment. Education savings is clearly more important than ever. The Coverdell Education Savings Account (ESA) offers a potentially tax-advantaged way to help you and your family manage the costs of education.
Fund elementary, secondary or college education
Contribute up to $2,000 a year per beneficiary
Tax-free withdrawal benefits1
WHAT IS A COVERDELL EDUCATION SAVINGS ACCOUNT?
A Coverdell Education Savings Account (ESA) is a trust or custodial account introduced by the United States government that allows families and individuals to set aside funds for qualified elementary, secondary, and higher education expenses.
By contributing to a Coverdell ESA, you can take advantage of potential tax benefits while building up funds for future educational needs. All contributions to a Coverdell ESA must be made in cash, and the maximum annual contribution limit is $2,000 per beneficiary.
Savings at a higher degree
By thoroughly understanding how a Coverdell ESA works and its contribution limits and eligibility requirements, you can effectively plan and save for your child's educational future while maximizing your tax benefits. Your Ameris banker will be sure to discuss these and other considerations with you so that you are fully informed:
- Open and make contributions on behalf of a child 18 or younger or a person of any age with special needs (the Beneficiary) for qualified education expenses
- Contributions are subject to limitations and are not tax deductible, but withdrawals can be made tax-free when needed for qualified education expenses; early withdrawal penalties may apply.1
- Annual income may impact eligibility; consult your tax advisor.
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Ameris Bank does not provide tax advice. Please consult your tax advisor to determine how this information may apply to your situation.
1 Consult a tax advisor
Ameris Bank is a full-service financial institution serving customers in the Southeast and Mid-Atlantic, with locations in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee and Virginia.