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Coverdell Education Savings Account

Saving for all levels of education

The cost of college is in the news all the time, and for many people the cost of elementary and high school is a factor, too. In California and across the U.S., education expenses at all levels of school are on the rise. That's where a Coverdell Education Savings Account (ESA) could help.

A Coverdell ESA offers a potentially tax-advantaged* way to pay for qualified education expenses, from kindergarten through college. At San Mateo Credit Union, we understand the complexities and rules of these accounts, and we're here to guide you in establishing one, if it's right for you.

Features of a Coverdell ESA

  • Similar to an IRA, money in an ESA can be invested in stocks, bonds, and mutual funds
  • Withdrawals are tax free so long as they are for education expenses (for example, computers, tutoring, or tuition)
  • Maximum contribution is $2,000 per year per beneficiary
  • Parents must meet certain income requirements to qualify for an ESA

Doing what's right for you

As with any investment account, it is best to speak with a financial professional about a Coverdell ESA and whether it's a good fit for your situation. You can rely on the team at SMCU for honest advice and guidance. Give us a call or visit your local branch to discuss your unique circumstances.

* For specific tax advice, please consult a qualified tax professional.
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