Saving for College Education Expenses
Top five advantages of saving for elementary, secondary and post-secondary education expenses.
The Advantages of a Coverdell Education Savings Account
Jump-Start Your Child’s Education Fund.
It’s never too early to prepare for the future. Start a college education fund with MTC Federal Credit Union.
An MTC Federal Coverdell Education Savings Account (ESA) can help you save for a child’s education expenses such as tuition, fees, books, supplies, equipment, and in some cases, room and board required for elementary, secondary and post-secondary education.
Top 5 Advantages:
- Minimum opening deposit $250
- Make non-deductible contributions that provide the potential for tax-free withdrawals.
- Anyone, family or non-family member can contribute.
- Contribute up to $2,000 per year, per child.
- Make contributions until child reaches age 18.
What are qualifying expenses?
Qualified higher education expenses include:
- Tuition and fees, books, supplies, and equipment that are required for enrollment.
- Room and board (subject to limits) for students enrolled at least half-time.
- Computer technology, equipment, Internet access, and related services used by the student during any of the years the student is enrolled.
Qualified elementary and secondary education expenses include:
- Tuition and fees, books, supplies, and equipment, academic tutoring, and special needs services incurred in connection with enrollment or attendance.
- Room and board, uniforms, transportation, and supplementary items required or provided by school in connection with attendance or enrollment.
- Computer technology, equipment, Internet access, and related services used by student and student’s family during any of the years the student is enrolled.
Here’s a look at how your MONEY can GROW with a Coverdell ESA:
The money you set aside today can make a big difference tomorrow for a brighter future.
Have questions? To speak to a Member Service Representative about our IRA products call 1-800-442-7792 or Schedule an Appointment.Open an Account Today
*Annual Percentage Yield (APY). All Credit Union programs, rates, terms and conditions are subject to change at any time and without notice. Consult your tax advisor. Other restrictions may apply.