Coverdell Education Saving Account
A Coverdell Education Savings Account (ESA) is an account established to offer parents an incentive in preparing for their children’s future educational expenses. It offers tax-free earnings on contributions if the funds are used to pay for qualified educational expenses.
Funds accumulated in an ESA can be used to pay for expenses incurred at an eligible public, private, or religious school, at the primary, secondary, or a post-secondary level. Distributions from an ESA may cover a wide range of educational expenses, and are not limited to tuition. As long as the expenses are not covered otherwise, they may include payment for fees, books, supplies, equipment, etc.
A child must be generally under age 18 to receive an ESA contribution. The current annual contribution limit is $2,000 and the deadline to make a contribution is April 15 of the following year. Funds accumulated in an ESA must be generally distributed prior to the child attaining age 30. If not used for qualifying educational expenses, the taxable portion of distributions is subject to a 10% penalty.
How to sign up
To open an ESA account please visit one of our branch locations. For additional information please contact our Member Services Center at 1.855.PSFCU.4U (1.855.773.2848).Go to main navigation