Coverdell Education Savings

Seeing a child work toward a college degree is a parent's dream. With the rapidly escalating costs of a college education, this dream can seem out of reach. A Coverdell Education Savings Account (ESA) can help your children reach their dreams. Unlike state 529 plans, Coverdell ESAs can be used to pay for qualified elementary and secondary education expenses as well as higher education. Your earnings grow tax-free if distributions are used for qualified education expenses.


Member Benefits
  • Save money with tax-free earnings.
  • Open as a share certificate or share savings account.
  • Peace of Mind with risk-free investment.
  • Convenient options to choose from for investment needs.
Requirements
  • CTCU membership.
  • Variable rate IRA minimum deposit: $10.
  • IRA certificates minimum deposit: $500.
  • There is a 90 to 180 day penalty for early withdrawal of IRA Certificates.
  • Maximum annual contribution to a Coverdell ESA is $2,000.
  • Withdrawals can be made at any time but must be used for qualified education expenses.
  • Consult a tax advisor concerning tax savings, penalties and deposit/withdrawal limitations and requirements.

Existing CTCU members can set up a Special Savings Account simply by calling:

847-662-2050

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