Coverdell Education Savings Account

Coverdell Education Savings Account - Start saving for your child's future today. Coverdell Education Savings Account - Start saving for your child's future today.

The Coverdell Education Savings Account was created as a way to save for a child’s educational expenses. The account provides a way for distributions of interest earnings to be potentially tax-free if used to pay for qualified education expenses needed. It can be used for a child enrolled in an elementary, secondary and college education program.

Contribution Eligibility and Amount

There is no requirement that an individual funding a Coverdell Education Savings Account have earned income, as is required for Traditional and Roth contributions. Contributions are not tax-deductible and may not be made to a Coverdell Education Savings Account if the contributor's income is above certain levels.

Coverdell Education Savings Account Single Filers Allowable Contribution Amount:

The Coverdell Education Savings Account was created as a way to save for a child’s educational expenses. The account provides a way for distributions of interest earnings to be potentially tax-free if used to pay for qualified education expenses needed. It can be used for a child enrolled in an elementary, secondary and college education program.

Contribution Eligibility and Amount

There is no requirement that an individual funding a Coverdell Education Savings Account have earned income, as is required for Traditional and Roth contributions. Contributions are not tax-deductible and may not be made to a Coverdell Education Savings Account if the contributor's income is above certain levels.

Coverdell Education Savings Account Single Filers Allowable Contribution Amount:

Modified Adjusted Gross Income (MAGI) - Single
Contribution Allowed
Less than $95,000
Full $2,000
Between $95,000 & $110,000
Partial contribution allowed
Over $110,000
No contribution allowed
Married, Joint Filers
Less than $190,000
Full $2,000
Between $190,000 & $220,000
Partial contribution allowed
Over $220,000
No contribution allowed