Top 3 Benefits of a Coverdell Education Savings Account
Reasons to Set Up a Coverdell Education Savings Account
When considering how to save for a child’s future education, parents and grandparents will find a variety of options. One of the best options for education savings is a Coverdell Education Savings Account, a savings pathway that is specifically beneficial if you start saving early in the child’s life. Here are the top three benefits of opening up a Coverdell Education Savings Account.
It allows you to begin saving early
The Coverdell ESA is especially ideal for parents and grandparents who begin saving early and plan to save large amounts toward the cost of college.
It allows a variety of options
Parents and grandparents can opt to use the funds for private elementary or secondary school tuition as well as a college education in the future.
It allows for tax-deferred accumulation and tax-free withdrawals
Parents and grandparents can invest up to $2,000 a year in the account, and while you still pay taxes on your contributions, withdrawals are made tax-free and you don’t have to pay taxes on annual growth.
Here at Signet, we value your family’s well-being and personal success. Set your child up for a lifetime of success by opening up a Coverdell Savings Account today!