Coverdell Education Savings Accounts
Consider Coverdell Education Savings Accounts for Education Expenses
For an increasing number of parents, education funding involves saving for college as well as elementary and high school expenses. These costs start hitting early -- in the form of computers, uniforms, tuition and more -- and can quickly put a dent in a family's budget. Coverdell Education Savings Accounts let you save for a wide range of qualified primary, secondary and higher education expenses in a tax-efficient way.
Benefits of Coverdell Education Savings Accounts
Discuss Coverdell Education Savings Accounts with your Financial Advisor
Benefits of Coverdell Education Savings Accounts
Today's parents have more education funding alternatives than ever before, yet it can be difficult to choose which savings plan is right for you. The benefits of Coverdell Education Savings Accounts include the ability to:
- Contribute up to $2,000 each year for each child up to the age of 18
- Choose from investment products, including stocks, bonds, and mutual funds
- Maintain control of distributions until the beneficiary turns 30
- Invite friends and family to contribute (Note: No more than $2,000 per year per beneficiary, regardless of the number of contributers)
- Change beneficiaries
- Make federal-tax-exempt withdrawals for qualified expenses
Note: You're eligible to open a Coverdell if your adjusted gross income is $95,000 or less for single taxpayers or $190,000 or less for married taxpayers. Partial contributions are allowed between $95,000 and $110,000 if single and between $190,000 and $220,000 if married and filing jointly.
Discuss Coverdell Education Savings Accounts With Your Financial Advisor
Your Wachovia Securities Financial Advisor can guide you through your education funding alternatives, including providing more information about Coverdell Education Savings Accounts and helping you establish a savings plan for your child. Contact your Financial Advisor for more information about Coverdell Education Savings Accounts and your other education funding alternatives.