Coverdell Educational Savings Account (ESA)
With the cost of a college education skyrocketing, a savings plan is more important than ever. Plan for your child's future with a Webster First Coverdell Educational Savings Account, or ESA, which allows you to withdraw funds tax-free for the specific purpose of funding your child's educational expenses.
About the ESA
- Account is opened in a child's name and features tax-free withdrawals for the specific purpose of funding the child's educational expenses (qualified educational expenses)
- Withdrawals must be made during the year in which the qualified educational expense occurred
- Non-deductible contributions are limited to $2,000 per year, per child under 18 years of age
- No annual fee
- Terms and rates are the same as our IRAs
What is a Qualified Educational Expense?
A qualified educational expense generally refers to tuition, books, fees, or other costs associated with qualified elementary, secondary, or post-secondary education expenses. In order to determine whether or not an expense is considered a qualified educational expense, we highly recommend you seek the counsel of a professional tax advisor and the educational institute.
How to Open and Access my ESA
- To open a Coverdell ESA, please visit your local branch
- Current Coverdell ESA holders wishing to access their account may do so in their local branch
For more information about the Coverdell ESA, please call us at 800.962.4452 or visit your nearest branch.