Coverdell Education Accounts

This account, formerly known as the Education IRA, allows individuals or other entities to contribute funds towards a child’s education. The child on whose behalf a CESA is established and maintained is referred to as the designated beneficiary.

Eligibility and Contributions

• Anyone (even non-individuals) can be a CESA contributor
• Contribution limits for individual contributors are subject to MAGI Ranges, see table below.
• Income limits for non-individuals do not apply
• Contributions are not tax deductible
• Contributions for the previous tax year may be made up to April 15^th of the current year.

Filing status/ Contribution Amount	All Other Filers	Joint Filer MAGI
Full $2,000 Contribution	Less than $95,000	Less than $190,000
Partial Contribution	$95,000 - $110,000	$190,000 - $220,000
No Contribution	$110,000 +	$220,000 +

Distributions

• Distributions for qualified education expenses are tax and penalty tax free.

Qualified Education Expenses

• Qualified education expenses include expenses required by public, private or religious elementary and secondary schools and higher education expenses. Contributions made to a qualified tuition program (also known as 529 plans) from CESA assets are also qualified expenses. Please contact the branch location nearest you for more details.

Traditional | Roth | Coverdell