Coverdell Educational Savings Account

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.

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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

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