If you meet income requirements, you can open a Coverdell Education Savings Account for a child, grandchild or friend and invest up to $2,000 a year for education expenses.
- Accounts can be opened for children under 18, or for a special needs beneficiary
- Contributions may be made by anyone whose modified adjusted gross income for the year is less than $110,000 ($220,000 if filing jointly). Contributions are not tax-deductible.
- A child may have more than one Coverdell account, but total annual contributions can’t exceed $2,000
- Earnings are tax-free when used for qualified elementary, high school and college expenses
- Assets can be transferred to a Coverdell Education Savings Account for another eligible family member
How do I get my child involved in saving for college?
Make a Coverdell Education Savings Account part of your college tuition fund and savings plan. Call or visit your nearest Associated Bank branch location for details today.
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