EDUCATION SAVINGS ACCOUNT
Get a head start on your child's education expenses
Tax-deferred savings for tuition, fees and books for your future scholar
With a Coverdell Education Savings Account (ESA), you can make annual nondeductible contributions on behalf of a child until they reach the age of 18. Earnings remain tax deferred while in the ESA and when your child uses the account to pay for qualified education expenses, the contributions and earnings come out tax free.
A bright future awaits
Here’s all you need to know about Education Savings Accounts.
Your ESA questions answered
Depending on your income, you may be able to contribute up to $2,000 per child. Each child may receive no more than $2,000 per year in ESA contributions. Thus, if more than one person is making ESA contributions for the same child, they may need to coordinate to ensure that the child’s total contributions in one year do not exceed $2,000.
Money can be withdrawn from a child’s ESA at any time, without restriction, and is tax-free if used for qualified education expenses.
Qualified higher education expenses include:
Tuition and fees, books, supplies, and equipment that are required for enrollment
Room and board (subject to limits) for students enrolled at least half-time
Computer technology, equipment, Internet access, and related services used by the student during any of the years the student is enrolled
Qualified elementary and secondary education expenses include:
Tuition and fees, books, supplies, and equipment, academic tutoring, and special needs services incurred in connection with enrollment or attendance
Room and board, uniforms, transportation, and supplementary items required or provided by school in connection with attendance or enrollment
Computer technology, equipment, Internet access, and related services used by student and student’s family during any of the years the student is enrolled
Ready, set, go.
PenAir experts are standing by to answer your questions and help you open an Education Savings Account.