Financial Plus Credit Union

Coverdell ESA

Choosing Financial Plus for a Coverdell ESA is like choosing not to saddle you or your child with student loan debt in the future.
You get something better!

Here is a way for parents and students (and even grandparents of future students) to save for college.  Though contributions to a Coverdell ESA are not deductible, the amounts in the account grow tax free. 

Distributions are tax free as long as they are used for qualified educational expenses such as tuition and fees, books for class, supplies, and even qualified expenses for room and board.  Not only can distributions be used for higher education, it can also be used for qualified elementary and secondary schools. 

You may have noticed the key term used is "qualified," so be sure to check with the Internal Revenue Service to learn more about qualified distributions or see the link below.


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