Coverdell Education Savings Account

Save up to $2,000 per child, per year, in your Coverdell Education Savings Account

Coverdell Education Savings Account

With a Coverdell Education Savings Account (Coverdell ESA), your savings grow, free from federal taxes.1 You can take money out of the account tax-free, as long as you are spending the money on your child's educational expenses.

  • Save up to $2,000 per child, per year in your Coverdell Education Savings Account.
  • Any child under 18 is eligible, and the account can be funded right up until their 18th birthday. Students with special needs may be eligible for contributions beyond their 18th birthday.2
  • Your contribution grows tax-free and withdrawals are not taxed as long as you use the funds for your child’s educational expenses. Funds are not tax-deductible though.
  • Your accounts are safe and secure - insured by the National Credit Union Share Insurance Fund to at least $250,000. Visit to learn more about your Share Insurance Coverage and to access resources including a Share Insurance estimator tool, publications, videos, and more.

Start Saving for Education Expenses

Qualifying Education Expenses

To spend money from your Coverdell ESA tax-free, make sure you use it for qualifying education expenses such as:

  • Tuition and fees
  • Uniforms, books, and supplies
  • Extended day program costs
  • Academic tutoring equipment
  • Computer equipment and internet access that is used for school
  • Transportation
  • Select room and board expenses
  • Other special needs expenses

Contribution Requirements

Who can contribute? 
Anyone with modified adjusted gross incomes (MAGI) under $110,00 for single taxpayers and $220,000 for joint taxpayers. That “anyone” includes grandparents, aunts, uncles, and even family members as long as the above income requirements are met. A parent or legal guardian must be listed as the responsible individual on the account regardless of who contributes.

How long can contributions be made? 
Contributions can be made until a child reaches 18 (except for children with special needs).

What is the maximum annual contribution allowed per child? 
Total contributions can’t be more than $2,000 in any year, no matter how many accounts have been established.

How is a Coverdell ESA different than a 529 plan?

There are many differences, but one big one is how the funds can be used. Unlike many state-sponsored Section 529 plans, a Coverdell ESA can be used to pay for qualified elementary and secondary education expenses at most public, private, and parochial schools.
Young girl sitting at a desk in school

Your Money Is Protected

Accounts at HVCU are Federally Insured for up to $250,000. Share insurance coverage is provided by the National Credit Union Administration (NCUA), an independent government agency that charters, regulates and insures federal credit unions. Visit to learn more about your Share Insurance Coverage.

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Important Legal Disclosures & Information

The tools and calculators on the HVCU website are provided for educational and illustrative purposes only. The accuracy of the calculations and their applicability to your financial circumstances are not guaranteed. HVCU does not provide tax, legal, accounting, financial, investment or other professional advice. The tools and calculators should not be used as a substitute for tax, legal, accounting, financial, investment or other professional advice. Your use of the tools or calculators does not assure the availability of, or your eligibility for, any specific product offered by HVCU or its affiliates. The terms and conditions of specific products may differ and affect the results obtained by using these tools and calculators. All financing is subject to credit approval. The default figures, amounts and information shown in the tools and calculators are hypothetical and may not be applicable to you. Please consult with qualified professionals to discuss your particular situation.

Tax laws are subject to change. Contact a tax professional for more details.

Funds must be used by beneficiary by age 30 (except for special needs).