COVERDELL EDUCATION SAVINGS

No matter how far off college seems to be, it's a good idea to start saving for their tuition:

Coverdell Education Savings Accounts

These accounts were created to help parents pay for the education of their dependent children. Designate an account for each child, and start saving early. Then you won't have to stress over a tuition bill when they turn 18.

• Contribute up to $2,000 per tax year
  
• Earnings will be distributed tax free if used to pay for elementary, secondary school or college education expenses.

Benefits

In 2002, the re-named Coverdell education savings account (formerly called the Education IRA) became a very attractive college savings vehicle for many people, including families that wish to save for elementary and secondary school expenses as certain K-12 expenses were added to the list of qualified expenses.

If you know how a Roth IRA works, then you have a pretty good idea of how an ESAs works. They both allow you to make an annual non-deductible contribution to a specially designated investment trust account. Your account will grow free of federal income taxes, and if all goes well, withdrawals from the account will be completely tax-free as well.

Have Questions? Just Ask.

Full Rate Details
Account Disclosures

Variable Certificate & IRA Accounts — dividends are compounded and paid quarterly on the first day of the next dividend period. A penalty may apply if the certificate is redeemed prior to maturity. Certificates will automatically renew upon maturity unless otherwise stipulated by the member.