Coverdell Education Savings

These accounts were formerly known as Education IRA’s, and are opened at Farmers & Merchants Bank as Certificates of Deposit. This account provides an ideal way for you to save money to help a child, grandchild, or other young person pay for higher education expenses down the road.

Contributions to a Coverdell Education Savings Account are not tax-deductible, but distributions used to pay for the qualified education costs of the named beneficiary are generally tax free. Contributions are limited to $2,000 per year, per child under the age of 18. Fees may reduce earnings.

The income limits for eligibility to contribute are:

Single Filer

Full $2,000 Contribution if your AGI is less then: table arrow iconLess then or equal to: $95,000
Partial Contribution if your AGI is between: table arrow icon
  • $95,000 – $110,000
  • no contribution if over $110,000

Married Filing Jointly

Full $2,000 Contribution if your AGI is less then: table arrow iconLess then or equal to: $190,000
Partial Contribution if your AGI is between: table arrow icon
  • $190,000 – $220,000
  • no contribution if over $220,000
Full $2,000 Contribution if your AGI is less then:Partial Contribution if your AGI is between:
Full $2,000 Contribution if your AGI is less then:Partial Contribution if your AGI is between:
Single Filer table arrow iconLess then or equal to: $95,000
  • $95,000 – $110,000
  • no contribution if over $110,000
Married Filing Jointly table arrow iconLess than or equal to: $190,000
  • $190,000 – $220,000
  • no contribution if over $220,000

Have Questions? Get In Touch

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