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:
|Income Limits for Eligibility
||Full $2,000 Contribution
if your AGI is less then:
if your AGI is between:
|| $95,000 - $110,000
no contribution if over $110,000
|Married Filing Jointly
||$190,000 - $220,000
no contribution if over $220,000