Coverdell Education Savings Accounts

You can have the flexibility of using your savings for your child’s qualified elementary, secondary and higher education expenses. Set money aside to grow tax deferred until distributed when the child reaches 18 years of age.

Details to Consider:

  • Total contributions for the account beneficiary cannot exceed $2,000 in any year.
  • Contributions are phased out once your adjusted gross income exceeds $220,000 for married couples or $110,000 for individuals.
  • Withdrawals are tax free and may be made at any time as long as the money is used for qualified education expenses by the child's 30th birthday.
  • Funds may be subject to income tax and a 10% penalty tax once the child reaches 30 years of age.
  • You may transfer funds to the ESA of a younger family member under the age of 30.

Visit any People's United Bank location to learn more or call us at (800) 392-3009 to schedule an appointment with a Financial Advisor.

Related Information


Investment and Insurance Products:

  • Not Insured by FDIC or any Federal Government Agency
  • Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate
  • May Lose Value

Investment and insurance products are offered through People’s Securities, Inc., a Broker/Dealer, member of FINRA and SIPC, an insurance agency and a registered investment advisor. People’s Securities, Inc. is a subsidiary of People’s United Bank, N.A. Investment products may involve risk, including possible loss of principal.

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