Coverdell Education Savings
A Coverdell Education Savings Account (ESA) is an investment tool created for the purpose of paying for the future cost of a child’s education. The plan allows total after-tax contributions of $2,000 per year for each child until they reach the age of 18 (extended if the child is a special needs child). These contributions and their subsequent earnings are tax-free when withdrawn to pay for qualified education expenses at elementary, secondary or post-secondary schools (private or religious). The deadline for contributions is the due date for filing the tax return for such taxable year not including extensions (usually April 15th).
Please consult with you tax advisor on which IRA is the best fit for you.
You can also visit Coverdell Education Savings Accounts for more information.
The tax information provided is for informational purposes only and is not intended, and should not be construed, as tax advice or a recommendation. Denmark State Bank does not provide legal or tax advice and you should consult with a professional tax advisor about your individual circumstances.