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.