SunAmerica Coverdell ESA

(Education Savings Account)

About the Plan

A Coverdell ESA is an education savings plan for individuals looking to save for their children’s primary and secondary education expenses.

Key Plan Benefits

  • Tax free growth and earnings for education
  • Contributions are 100% discretionary
  • May be used to pay for primary and secondary education expenses
  • Parent/Guardian may rollover into another minor’s Coverdell ESA
  • Minimal record keeping and reporting requirements
  • Low administrative costs

Eligibility Requirements

Individual filers earning less than $110,000 and joint filers earning less than $220,000 are eligible to contribute for minors under age 18.

Establishment and Funding

The Coverdell ESA must be established and funded by the individual’s tax return due date without extension. Contributions can vary by year. Minimum initial contribution is $250 per fund.

Contribution Limits

An individual may contribute up to $2,000.

Income Limits for Contribution Eligibility

Allowable contribution may be modified depending on income.
For single filers: Up to $95,000 (to qualify for a full contribution); $95,000 - $110,000 (partial contribution). Not eligible to contribute when income is above $110,000.
For joint filers: Up to $190,000 (to qualify for a full contribution); $190,000 - $220,000 (partial contribution). Not eligible to contribute when income is above $220,000.

 

Contact your Financial Representative or call the SunAmerica Retirement Plans Group at 800.858.8850 x6010 or Contact Us.

PLEASE NOTE: None of the information in this website should be considered legal and tax advice. You should consult your legal or tax advisers for information concerning your own specific tax situation. The forms and numbers shown in this website are for illustrative purposes only.