A Coverdell Education Savings Account (CESA) is a tax-advantaged way to help you pay for the future cost of a child's education expenses. Parents, grandparents, or any interested party may contribute to a CESA to cover certain elementary school, secondary school, and college expenses.

Withdrawals are tax and penalty-free as long as they are used only for qualified education expenses, up to permitted limits. These expenses may include tuition, fees, tutoring, books, and supplies — even the purchase of computer technology or equipment or Internet access used by the benefiting student and family when the student is in school.

CESAs may affect other student savings programs, such as federal financial aid. Please consult a financial or tax professional.

	Highlights Below > Benefits You’ll Receive > Fast Facts > IRA Investment Options

• CD choices with a wide range of terms¹
• Tax-free earnings on after-tax dollars²
• Tax-free withdrawals for qualified education expenses
• Contributions allowed until child turns 18
• Any unused account funds can roll over, without penalty, to other family members under age 30
• Federally insured up to FDIC limits

	Fast Facts
	Contribution Details Non-deductible contributions may be made annually to each child's account The deadline for contributions is the same as the contributor's tax filing deadline, not including extensions Contributions cannot be made for a designated beneficiary who is over 18 years of age (unless the beneficiary is of special needs)
	Contribution Limit $2,0003 Income Limits Under $110,000 AGI4 - individual Under $220,000 AGI4 - married, filing jointly

1. Early withdrawals are subject to a CD penalty.
2. Withdrawals are tax and penalty free if used for qualified education expenses. Funds must be fully withdrawn when the beneficiary reaches age 30, and any amounts not used for qualified education expenses are subject to an additional 10% tax penalty.
3. Based on an IRS formula, the allowed contribution is reduced when AGI (adjusted gross income) exceeds these limits.
4. AGI - Adjusted gross income.

IRA Investment Options
In addition to our FDIC-insured IRAs, your may open a self-directed IRA and invest in mutual funds and other non-FDIC-insured investments offered by the Financial Services Group.

	Bank IRAs† Offered through American Savings Bank FDIC-insured accounts Fixed Term Available through branches
	Brokerage IRAs††† Offered through American Savings Bank's Financial Services Group department Non-FDIC-insured investments, i.e., mutual funds and annuities