Overview
Save for the future
Help save for your child’s future with a Coverdell education savings account. Investing in education is essential for you and your family’s long-term financial well-being. At Spirit of Alaska Federal Credit Union, we make saving for college easy—all withdrawals are tax-free when used for qualified education expenses. As an added bonus, unused funds can be used for other family members’ educations. An account can be started by anyone interested in contributing. We welcome parents, grandparents, and relatives to open one today.
A tax advantaged IRA style account to save for qualified education expenses
- No annual maintenance fee
- All earnings are tax-deferred
- No IRS penalties when used for education
- Contributions can be made until the child reaches age 18
- Contribute up to $2,000 per child per year
Additional Information
Distribution may begin at the age of 18*. Funds must be distributed by age 30.
Contributions are not tax deductible, and may be made until child reaches the age of 18.
Must be coordinated with other education plans such as State Tuition Plans or HOPE and Lifetime Learning tax credits.
See Education Savings details from the IRS to find further specifics on income limitations, contributions, and withdrawals.
Disclosures
*Distributions must be used for qualified higher education expenses such as tuition, fees, books, supplies, and equipment for colleges and vocational schools. Funds must be distributed by age 30. Must be coordinated with other education plans such as State Tuition Plans or HOPE and Lifetime Learning tax credits
Contribution income limitations apply.
Rates
Education Savings Rates
| Account Type | Min. Opening Bal. | Min. Bal. to Earn Dividends | Dividend Rate | APY* |
|---|---|---|---|---|
Coverdell Education Savings |
$0.00 | $0.01 | 0.15% | 0.15% |
*Annual Percentage Yield. Refer to our Pricing Guide (PDF) for all fees. Fees may reduce earnings. Rates are subject to change at any time. Current as of [date].
Calculator
FAQ
FREQUENTLY ASKED QUESTIONS
Education Savings Accounts are NOT limited to family. Anyone can contribute.
Interest grows tax free, and taxes are waived when the distributions are spent on qualified educational expenses, such as tuition, fees, books, supplies, and equipment for colleges and vocational schools.
No. You must still pay taxes on contributions.
Yes. Unused funds may be rolled into another IRA for a new beneficiary under the age of 18.
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