A federal tax-advantaged educational savings program the Coverdell ESA funds education expenses – not retirement.


  • Allows for after-tax contributions of up to $2000 per child annually.
  • Interest on contributions grows tax-free.
  • Account must be established before a child turns 18. Deposits can be made until age 18.
  • Withdrawals can be made until age 30 for qualified educational expenses.
  • By age 30 unused funds can be transferred to a younger family member’s Coverdell account.
  • No annual maintenance fee.
  • If used for qualified education expenses distribution can be tax-free. Income limits apply.