Give the Gift of Education with a Coverdell Education Savings Account
Prepare for the Future with a Coverdell ESA
The Coverdell Education Savings Account (ESA) is a trust or custodial account that offers you a tax-advantaged method to save up to $2,000 per year for your child's education — both elementary/secondary education (kindergarten through grade 12) and post-secondary education (college, graduate school, vocational school, etc.). You can establish a Coverdell Education Savings Account through State Farm® for the benefit of any child generally under age 18.
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Ages and Accounts
You can contribute to a Coverdell Education Savings Account anytime up to the child's 18th birthday. Contributions will not be accepted after that time, unless the child is a special needs beneficiary (as defined by Treasury Department regulations).
There is no limit to the number of Coverdell Education Savings Accounts that can be established designating a particular child as beneficiary.
You may contribute up to $2,000 annually to a child's Coverdell Education Savings Account if your modified adjusted gross income (see table below) is less than $95,000 as a single tax filer (or married filing separate) or $190,000 as a married couple filing jointly in the tax year in which you contribute. The $2,000 maximum contribution limit is gradually reduced if your modified adjusted gross income exceeds these limits.
Anyone (including the child for whose benefit the account is established) may contribute to a child's Coverdell ESA, as long as his or her income falls within the income guidelines and the total of all contributions for one beneficiary for the tax year does not exceed the $2,000 limit.
State Farm nor its agents provide investment, tax or legal advise. Consult your investment, tax or legal advisor regarding your personal situation.
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State Farm Bank®, Bloomington, Illinois, is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and subject to investment risk, including possible loss of principal invested. Contact State Farm Bank toll-free at 877-SF4-BANK (877-734-2265). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Service.