An investment in education.
There’s no greater tool in life than an education. The flexibility of a Coverdell Education Savings Account (ESA)1 makes it easy to start saving today. ESAs are designed to meet your needs as you provide the funds for a promising education. Comerica CD-ESAs provide investment alternatives with flexible terms, competitive rates and customized CD deposit options.
- Tax benefits combined with educational savings
- Any child under 18 can be designated as a beneficiary
- Tax-free distributions for qualified education expenses including elementary, secondary, and post-secondary tuition and vocational schooling
- Hope and lifetime learning credits can be claimed in the same year as a tax-free
distribution,if they are not used to fund the same expenses.
- Are not taxed upon withdrawal from the account if they are used for qualifying educational expenses before the beneficiary’s 30th birthday
- Will earn interest at competitively priced rates
- Can be rolled over or transferred to another ESA to benefit another qualified family member
- Are not tax deductible
- Annual limits may be adjusted by IRS for AGI and cost of living
- Can be made to multiple accounts for multiple beneficiaries as long as the total contributions to all accounts on behalf of a beneficiary in any year does not exceed $2000.
FDIC insuredup to the maximum allowed by law
tax freeas long as they are used for qualified education expenses
- Can be used for qualified expenses,
including:tuition, room and board, fees, supplies, books, educational computer technology or equipment, uniforms, tutoring, special needs services, and internet access
- Are mandatory (and could be taxed) following the beneficiary’s 30th birthday
1 Investing in a Coverdell Education Savings Account (ESA) does not guarantee that college costs will be met. Contributing to an ESA does not impact your eligibility to contribute to a Traditional, Roth, SEP or SIMPLE IRA.
2 Comerica Bank and its affiliates do not provide tax or legal advice. Please consult with your tax and legal advisors regarding your specific situation
3 Additional detail can be found in the Master Terms of Coverdell Education Savings Custodial Accounts