Coverdell Education Savings Account (ESA)
A savings account for investing in a student's future
Save for a child's education with a tax-advantaged account designed to help cover qualified education expenses. A Coverdell Education Savings Account (ESA) can be used for eligible K-12 and higher education costs, making it a flexible way to invest in a student's future.
Is a Coverdell Education Savings Account Right for You?
A Coverdell ESA may be a great choice if you
- Are saving for a child's future education expenses
- Want funds that can be used for eligible K-12 and college costs
- Are looking for a tax-advantaged way to save for education
- Want to help a child or grandchild prepare for future educational opportunities
Benefits & Features
Invest in their future
Benefits
- Save for qualified elementary, secondary, and higher education expenses
- Help reduce the financial impact of future education costs
- Grow education savings through a tax-advantaged account
- Give a child or grandchild a strong financial start for the future
Features
- The designated beneficiary must be under age 18 when the account is established, unless they qualify as a special needs beneficiary
- Total annual contributions for a beneficiary cannot exceed $2,000 across all Coverdell ESAs
- Contributions are made in cash and are not tax deductible
- Funds generally must be used before the beneficiary reaches age 30, subject to IRS rules
Why First National Bank?
Banking that's personal
Planning for education is one of the most meaningful investments you can make. At First National Bank, we're here to help you choose savings solutions that support your family's long-term goals with trusted guidance and personalized service.
Ready to Start Saving for Education?
Open a Coverdell Education Savings Account and begin investing in a brighter future for the student in your life. Visit one of our First National Bank locations to get started.
Coverdell Education Savings Accounts are subject to IRS eligibility requirements and contribution limits. Please consult your tax advisor regarding the tax treatment of contributions, earnings, and withdrawals.
