The Education Savings Account was designed to help parents, grandparents or others save for their children's education. The Education Savings Account is similar to the Roth IRA, except that the Education Savings Account can be used to pay for future education expenses. The depositor names the responsible individual on the plan agreement at the time the Education Savings Account is opened. The responsible individual is the parent or guardian of the designated beneficiary of the Education Savings Account.
Contributions to a Coverdell Education Savings Account are not tax deductible; however, the earnings are tax deferred.*
Eligible Education Expenses
The term "qualified higher education expenses" is defined as tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible institution (i.e., colleges and vocational schools).
To fit your needs, you can open a Coverdell IRA Savings or Certificate Account.
$2,000 Contribution Limit
Invest up to $2,000 per year, per child (up to age 18), to pay for certain future higher education expenses.
Anyone can contribute up to $2,000 to a child's Coverdell Education Savings Account, provided that the individual's income level does not exceed the limit.
Visit the branch nearest you, or call (631) 698-7000 ext. 6780.
*Consult your tax advisor.