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:
Partial Contribution
if your AGI is between:
Single Filer <=$95,000  $95,000 - $110,000
no contribution if over $110,000
Married Filing Jointly  <=$190,000 $190,000 - $220,000
no contribution if over $220,000