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The flexibility of a Coverdell education savings account (ESA) 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.
Visit a Comerica banking center near you to get started saving with a Coverdell ESA.
Whether a prepaid tuition or a college savings plan, a 529 plan may be used for education-related expenses at all accredited colleges and universities. Any person, married or single, relative or non-relative, can easily contribute. Plan details differ from state to state.4, 5 This versatile option lets you choose from multiple strategies to create a solution that works for your unique needs.
Visit a Comerica banking center near you to get started saving with a 529 savings plan.
Coverdell ESA¹ ² ³ | 529 Savings Plan⁴ ⁵ | |
Description: | Self-directed educational savings account (similar to an IRA) that is FDIC insured. You can contribute and withdraw at the time the student has educational costs and needs. |
Choose from multiple portfolio options. You can contribute and withdraw at the time the student has education costs. Investment choices are limited to state selections and are NOT FDIC insured. |
Tax Benefits: | Earnings & withdrawals are tax-free if used for qualified expenses. |
Earnings & withdrawals are tax-free if used for qualified expenses. Depending on your state, you may also be eligible for state income tax deductions. |
Used For: | Primary, secondary and college education qualified expenses, including tuition, room and board, mandatory fees, books and computers |
College education qualified expenses, including tuition, room and board, mandatory fees, books and computers |
Age Limits: | Must be used by age 30, or transferred to another beneficiary or a 529 plan |
No age limits. Beneficiary can be any age. |
Contribution Limits: | $2,000 per student per year (2020 & 2021) |
Varies by state, normally up to $15,000 per year |
Income Limits: | Gross income over $220,000 as a married couple or $110,000 for other taxpayers can’t contribute |
No income limits for contributors |