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Education Accounts (Coverdell ESA) Details & Disclosures

Eligibility: The individual contributor must not exceed the Modified Adjusted Gross Income (MAGI)* limit and the beneficiary must be less than 18 years old.

Other Advantages: In addition to parents, other relatives and friends can fund the Coverdell ESA. Funds can also be moved from one family member’s Coverdell ESA to another’s.

A Coverdell ESA can be opened with as little as $100 in an IRA Share Account. IRA Term Share Certificate options earn a higher rate of interest and can be opened with a minimum of $500.

Coverdell ESA Annual Contribution Limits per Child: $2,000

* In U.S. tax law, modified adjusted gross income (MAGI) is detailed in the instructions to IRS Form 8606.

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