Smart plans. Knowledgeable advisors.
Smart plans. Knowledgeable advisors.
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.
Tuition, room and board, and qualified expenses at accredited colleges5
Free from federal tax.5 The more you contribute, the larger your nest egg grows tax-free.
Can be used to gift assets - contributions may be free from federal gift taxes for the contributor5
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 |
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