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.