Coverdell Education Savings Accounts (ESA)

Planning for your child’s education is a big undertaking.

We’re proud to offer Coverdell Education Savings Accounts (ESAs) as a flexible option for our members’ educational planning needs.

Key Features of Coverdell ESAs:

• Tax-Advantaged Growth: While contributions are made with after-tax dollars, all earnings grow tax-free when used for qualified education expenses, maximizing the value of every dollar you save for your child’s future.
• Broad Educational Coverage: Unlike some education savings options, Coverdell ESAs can be used for expenses from kindergarten through college, including private school tuition, required textbooks, educational technology, and even specialized tutoring services.
• Investment Flexibility: Your Coverdell ESA comes with diverse investment options, allowing you to adjust your strategy based on your timeline and risk tolerance, potentially leading to stronger long-term growth for your educational fund.
• Family-Friendly Features: Multiple family members can contribute to the same child’s account, making it easier for grandparents, aunts, uncles, and others to help invest in your child’s educational future.
• Early Planning Advantages: Starting a Coverdell ESA early allows you to maximize the power of compound growth, potentially turning modest regular contributions into substantial educational savings by the time your child reaches school age.

Important Considerations:

• Annual contributions are limited to $2,000 per beneficiary across all Coverdell ESAs
• Income eligibility requirements apply to contributors
• Funds must be used by the beneficiary’s 30th birthday (with exemptions made for beneficiaries with special needs)
• Qualified expenses include tuition, books, supplies, equipment, and certain room and board costs

To open a Forge Credit Union Coverdell ESA, call us at 610-352-2000 or visit our local branch during business hours.