Coverdell Education Savings Account
Riverfront is pleased to introduce the
Coverdell Education Savings Account to its list of investment choices.
Previously known as the Education IRA, the Coverdell Education Savings
Account (CESA) is a tax favored investment tool created to help save for a
child’s education expenses.
- Low minimum deposit: Begin investing
with just $1.00
- Competitive Rates: Earn tax free
dividends on balances of $100 or more
- Easy Contribution Options: Make
deposits through payroll deduction, direct deposit, in person or through
- Fee free account: Pay no annual
service fee or enrollment fee on this account
- Your funds are federally insured up to at least
$250,000 and backed by the full faith and credit of the United States
Government through the National Credit Union Administration
Who is eligible to contribute?
- Anyone can contribute to a CESA on
behalf of a child as long as your modified adjusted gross income (MAGI)
does not exceed certain limits.
- There are no requirements that a
contributor have earned income or be under a certain age.
- Contributors can also be non
individuals such as corporations. These entities have no income
restrictions for qualifications.
How much can I contribute?
- The total aggregate contribution into
one or more CESA’s on behalf of a child is $2000 a year
How does the law define a child?
- A child is defined as a person under
the age of 18. The child’s eligibility for CESA contributions ends the
day after the child attains the age of 18. Children with special needs
are not subject to this restriction. A child is also known as the
designated beneficiary of a CESA.
Who has control of the assets?
- Each CESA will have a responsible
individual, usually the child’s parent or legal guardian. That
individual has control of the assets until the child reaches the age of
What is a qualified education expense?
- CESA funds can be used for elementary,
secondary and higher education expenses. Generally these expenses would
be tuition, fees, books, supplies, certain computer technology and
How to apply:
To start investing in a Coverdell
Education Savings Account with Riverfront,
Contact Us, for an application.
A Financial Service Representative will help you determine what options
best meet your needs.
CESA Share Certificates are also
available. See rates listed below.
For tax advice, consult a tax advisor.