Coverdell Education Savings Account (ESA)

esa

Forms and Requests Received Will be Processed in 24-48 hours of Quest Receiving the Form.

The Coverdell Education Savings Account was created to encourage savings to cover future education expenses. An ESA can be used for all qualified educational expenses until the beneficiary reaches the age of 18. Any individual (including the designated beneficiary) can contribute to a Coverdell ESA if the individual’s MAGI for that year is less than $110,000. For individuals filing joint returns, that amount is $220,000. Organizations, such as corporations and trusts, can also contribute to Coverdell ESAs. There is no requirement that an organization’s income be below a certain level.

Contributions must meet all of the following requirements:

  • They must be in cash
  • They can’t be made after the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary
  • They must be made by the due date of the contributor’s tax return (not including extensions)

Apart from the qualified education expenses, any assets or cash remaining in an ESA must be distributed when either one of the following two events occurs:

  • The designated beneficiary reaches age 30. In this case, the remaining assets must be distributed within 30 days after the beneficiary reaches age 30. However, this rule does not apply if the beneficiary is a special needs beneficiary.
  • The designated beneficiary dies before reaching age 30. In this case, the remaining assets must generally be distributed within 30 days after the date of death.

2016 & 2017 Contribution Limit: 

  • $2,000

[PDF] DOWNLOAD ESA STARTER KIT

CLICK HERE TO COMPLETE THIS APPLICATION VIA DOCUSIGN

[PDF] DOWNLOAD (5305) CUSTODIAL AGREEMENT

Submit Your Forms: All forms can be mailed or faxed to any of our locations or emailed to NewAccounts@QuestIRA.com.