Education should never be unattainable. A CESA with CCCU helps members and their families put as much money towards their futures as possible.
Between grants, loans, and scholarships, there are many ways to pay for college, but starting a college savings account is the best way to start planning for a child's future. And it's never too early to start saving!
A Coverdell Education Savings Account is beneficial because any investment growth is not taxed upon withdrawal, and approved education expenses include more than just tuition.
Another great feature of a CESA is that anyone can make contributions to your college savings account on behalf of a beneficiary under the age of 18, up to an annual maximum of $2,000 for single and joint filers.
Be sure to let friends and family know that you have the account set up so they can contribute to your child's education!
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The contributor's Modified Adjusted Gross Income (MAGI) is limited as follows:
The account is owned and controlled by the parent opening account, with the child as the beneficiary for the funds to be used for educational expenses.
If you do not use your CESA, or your child decides to not attend college, you can transfer the account to another eligible family member. If the original account holder decides to go to college later, they can withdraw money from the account for qualified education expenses until they are 30 years old.
Membership eligibility is required. All new accounts are subject to CCCU standard account membership terms and disclosures. IRA transactions are subject to IRS rules and regulations.
1 Please consult your tax advisor for specific information on how certain laws apply to your situation and about your individual financial situation.