As the cost of higher education continues to rise, saving for college is more important than ever. Hilltop National Bank offers Coverdell Education Savings Accounts (ESAs) which allow you to set aside money to pay for future educational expenses.
Accounts may be established by anyone wishing to contribute to a child’s education fund. The annual contribution limit is $2,000 per designated beneficiary:
“The income earned by or within Coverdell Education Savings Accounts will not be taxable when distributed if withdrawn to pay qualified education expenses. Under pre-EGTRRA law, the income earned by a Coverdell Education Savings Account was not taxable if it was used to pay qualified higher education expenses. Under EGTRRA, this income is not taxable if it is used to pay qualified education expenses for qualified elementary, secondary, or post-secondary education expenses.