This isn’t just a college savings account. A Coverdell Education Savings Account (ESA) helps you save for a variety of education expenses, including elementary and secondary education.
Investing in a child’s education is one of the greatest gifts you can give. A Coverdell ESA makes it a little easier to make that possible.
Eligible education expenses
Expenses can be either for higher education, elementary or secondary education. Eligible educational institutions include postsecondary, elementary and secondary schools. The designated beneficiary must be under age 18 or be a special needs person.
Coverdell ESA features
- No annual maintenance fees
- Qualified distributions are tax-free
- Low opening deposit of $25
- Choice of an LGFCU Visa® Debit Card or ATM/Member Access Card
- Funds are transferable to another child
- Tax-deferred earnings
- Early withdrawal exceptions
- NCUA federally insured separately up to $250,000