If you are a parent you know that one of the biggest expenses a child will face is that of education. Legacy Bank knows our emerging generations need to plan just as much for the present, as their future. Legacy Bank Coverdell Education Savings Accounts are designed to help parents and students prepare for educational investments.
ESA accounts designate a beneficiary and allow you to contribute up to $2000 per beneficiary per calendar year.
Who is a beneficiary:
- Anyone under 18
- Anyone with special needs
ESA contributions are not tax deductible, but they do grow tax free until they are distributed. If the distribution is less than the expenses for a qualified educational institution when the funds are withdrawn, the beneficiary will not pay taxes on the withdrawal.
Benefits apply to:
- Qualified Higher Education Expenses
- Qualified Secondary Education Expenses
- Qualified Elementary Education Expenses
Contact a Legacy Bank customer service representative today to learn more about the growth and development accounts available to parents and students today.