Help the child in your life achieve a bright future.
A Coverdell education savings account (ESA) may be an easy way to start saving for a child’s education.
Contributing to a child’s ESA will help jump‑start his savings—and give him tax‑free money later—to pay for education expenses.
With an ESA, individuals can make annual nondeductible contributions on behalf of a child until the child reaches age 18. The earnings generated remain tax deferred while in the ESA. When the child uses the ESA assets to pay for qualified education expenses, the contributions and the earnings come out tax free.
Anyone—family member or nonfamily member—can contribute to a child’s ESA, as long as their modified adjusted gross income (MAGI) is less than or within the applicable IRS limits.
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