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Coverdell Education Savings

A great way for parents to save for their child's education.

  • Earnings accrue tax-free
  • No penalty on withdrawals as long as the funds are used for qualified educational expenses
  • Funds may be transferred to other family members if not used by the beneficiary
  • Contribute funds until the child turns 18. The child has until age 30 to use the funds and receive the tax exemption

Who can contribute?

Anyone may contribute to a child’s Coverdell account if their modified adjusted gross income meets the IRS guidelines as follows:

  • $95,000 for single persons, with a phase out up to $110,000
  • $190,000 for married couples filing jointly, with a phase out up to $220,000

How much can be contributed?

  • The maximum contribution per child per year is $2,000
  • Contributions are NOT permitted once the child turns 18 years of age (except for special needs beneficiaries)

What are qualified educational expenses?

  • Public, private or religious elementary or secondary schools
  • Post-secondary or higher education for any college, university or vocational school
  • Tuition, fees, supplies, books, and academic tutoring

Take the Next Step

We believe SPIRE is more than a financial institution. Our Core Purpose is to improve lives and we want to be a partner in life with you and your family.

Start saving for your child's future today.

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