IBEW Local 56 Federal Credit Union was chartered in 1961 - Once A Member ... Always A Member

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Educational Savings

Coverdell Education Savings Account

The Coverdell Education Savings Account's sole purpose is to allow parents, grandparents, and other interested persons to set up to $2,000 aside each year to help pay the higher education expenses of the child named on the account. The account is set up and reported under the child’s Social Security number. Earnings accumulate tax-free and withdrawals are tax-free if used for vocational, undergraduate, or graduate education expenses by the time the person is 30 years of age.

Each child can only have an aggregate of $2,000 contributed in his or her name. Therefore, if both parents choose to contribute to an Coverdell ESA, the total of their contributions cannot exceed $2,000. If the funds in the Coverdell ESA are not used by the child, the Coverdell ESA may be rolled-over to another child’s Coverdell ESA within the same family.


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