Colleges and private schools have become increasingly expensive. But there's a Grade A way for Central Washington families to make academic opportunities more affordable for their children. With a Coverdell Education Savings Account (ESA), annual contributions, competitive interest earnings and multiple tax advantages combine to help you set aside enough money to cover tuition, fees, and more.
- Contribute up to $2,000 per year until your child turns 18
- Annual interest earnings are tax-exempt and all qualified withdrawals are tax-free
- Funds may be used for higher education or private elementary or secondary schools
- Money can be used for tuition, room and board, fees, books, supplies, and equipment such as laptop computers
- Anyone can contribute to a child's Education Savings Account, including grandparents, aunts, uncles, etc.
- No annual fees
- If a child doesn't use the account funds, they can be transferred to another eligible family member
- ESAs are compatible with other education savings tools, such as 529 Plans
Certain exceptions may apply for special needs beneficiaries.
For more information about Tax Benefits for Education see IRS Publication 970 or seek the assistance a qualified tax professional.