save for your child's future today
The Coverdell Education Savings Account was created as a way to save for a child’s educational expenses, from kindergarten through college. The account provides a way for interest earnings to be distributed potentially tax-free, if used to pay for qualified education expenses.
Contribution Eligibility and Amount
There is no requirement that an individual who funds a Coverdell Education Savings Account have earned income, however if the contributor's income is above certain levels, they may not make a contribution to a Coverdell Education Savings Account. Contributions to a Coverdell Education Savings Account are not tax-deductible. While not tax-deductible, check with your tax advisor regarding the tax-deferral benefit this account can offer.
Coverdell Education Savings Account Allowable Contribution Amount:
Modified Adjusted Gross Income (MAGI) - Single Filers |
Contribution Allowed |
---|---|
Less than $95,000 | Full $2,000 |
Between $95,000 & $110,000 | Partial contribution allowed |
Over $110,000 | No contribution allowed |
Modified Adjusted Gross Income (MAGI) - Married, Joint Filers |
Contribution Allowed |
---|---|
Less than $190,000 | Full $2,000 |
Between $190,000 & $220,000 | Partial contribution allowed |
Over $220,000 | No contribution allowed |
Open an Account
Open an account at any of our branch locations. Enter your zip code to find a CapFed® branch nearest you.
Have questions about which account is best for you?
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