Coverdell Education Savings Accounts (ESAs)
CFCU offers ESAs to help pay for child education expenses.
ESAs quick facts:
- Annual contribution limit of $2,000 per child, per year
- Maximum allowable contribution can be made for each child in a family
- Contributions are not tax deductible
- No taxes paid on the principle or earnings when withdrawn for qualified education expenses
- Disbursements may be used for any qualified education expense, expanded to include eligible elementary and secondary expenses, as well as post-secondary education
- Contributions can be made until the child reaches his/her 18th birthday (age limit may be extended in cases where the child has special educational needs)
Funds may be transferred to another child in the family if not used by the original beneficiary
*For information on the tax ramifications of these accounts, please consult your tax advisor.
If you'd like more information about Communication Federal Credit Union's ESA products please visit your local branch or call us at 800.522.3535.