Education Savings Accounts

  • Overview

    Education Savings Accounts

    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

    "Over the years you have done a fabulous job helping me. I recommend you to friends who tell me they plan on heading to Fairbanks."

    - T.L.

    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.

    Coverdell Education Savings Amendment

  • 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 1 June 2023.

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  • FAQ

    Frequently Asked Questions

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