Coverdell Education Savings Account (CESA) help you save for education expenses.
A Coverdell education savings account (Coverdell ESA) is a trust or custodial account set up in the United States solely for paying qualified education expenses for the designated beneficiary of the account. This benefit applies not only to qualified higher education expenses, but also to qualified elementary and secondary education expenses.
There are certain requirements to set up a Coverdell ESA:
- When the account is established, the designated beneficiary must be under the age of 18 or be a special needs beneficiary.
- The account must be designated as a Coverdell ESA when it is created.
- The document creating and governing the account must be in writing, and it must meet certain requirements.