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Coverdell Education Savings

Unlock the gateway to your child’s educational future.

Every parent dreams of their child attending college—but higher education often comes with a hefty price tag. Our Coverdell Education Savings Account (ESA) empowers you to begin saving now while enjoying the tax benefits. You’ll be able to stand proud and prepared on the monumental day when your kid says, "I got accepted!"

Opening a Coverdell ESA with Power Financial Credit Union (PFCU) can secure your child's educational future. Plus, if you’re not already a member, joining us will grant you access to a wealth of membership benefits.

Power Financial Credit Union Coverdell ESA Benefits

Tax Advantages

Enjoy tax-free earnings and withdrawals for educational expenses, maximizing the value of your savings.

Flexible Usage

Use account funds for tuition, books, uniforms, and more, from elementary through college levels.

Contribution Options

Contribute up to $2,000 a year per child, allowing for disciplined and structured savings.

Control and Transferability

You have control of the funds and can change the account benefits to another family member if needed.

Why Open a PFCU Coverdell Education Savings Account?

Setting aside funds for your child’s education is a wise investment in their future. A Coverdell ESA is a phenomenal tool designed to ease the financial burden of education.

  • Opening a Coverdell Education Savings Account is easy. Simply apply online or visit one of our branches if you’d like to open the account in person.
  • There are no minimum deposits. You can start saving for college with as little as you want, making it accessible for all budgets.
  • Other family members can contribute to your child’s ESA, fostering a collective effort for your child’s education.
  • You can use the account for other expenses beyond tuition, such as equipment, academic tutoring, and special needs services.

Embrace the opportunity to give your child the resources they need for the education they deserve. Start saving to secure their future today!

Open Account

How to Open a Power Financial Credit Union Coverdell Education Savings Account

Step 1

Open Account Online

Simply complete our online application form to get started with your child’s Coverdell ESA.
Step 2

Start Saving

You can set up automatic deposits, or transfer funds manually.
Step 3

Watch Your Money Grow!

Watch your funds grow tax-free and withdraw tax-free for educational needs.

"The customer service was amazing. Nicole, the assistant branch manager, was great. She explained everything, step by step. Thank you!!!!"

– Claudia S.

Accordion Section

A Coverdell Education Savings Account (ESA) is a tax-advantaged savings account designed to help you save for education expenses. Earnings grow tax-free if you use them for qualified education expenses. It’s similar to a 529 college savings plan, and you can have both simultaneously for the same beneficiary.

You can use the ESA as a college savings plan or for other items, such as tuition, fees, books, supplies, and even K-12 costs. The account has an annual contribution limit of $2,000 per beneficiary, and you can contribute to the account until your child (the beneficiary) turns 18 years old.

If your child ends up not going to college, the balance will be disbursed to the child (the beneficiary) when they turn 30. However, they’ll have to pay taxes on the funds distributed.
You can deposit funds in your credit union Coverdell Education Savings Account using these easy methods:
  • Manual, one-time transfer from another account
  • Automatic, scheduled transfers from another account
  • Direct deposit from another source
  • Payroll deduction from your paycheck
  • In person at a branch
  • Over the phone by calling 800-548-5465


Contributions are not tax-deductible according to the IRS.
You have until your child is 18 years old. However, there are exceptions if your child has special needs.
Yes, you can change the beneficiary of a Coverdell Education Savings Account. The new beneficiary must be a family member under the age of 30. This flexibility is helpful if the original beneficiary decides not to pursue further education or if there are remaining funds after the initial beneficiary has completed their education.

Changing the beneficiary ensures your family can still use the funds for educational purposes.

There are income limits for contributing to a Coverdell Education Savings Account and they may change every year. In June 2023, Single filers with a Modified Adjusted Gross Income (MAGI) of $110,000 or less and joint filers with a MAGI of $220,000 or less are eligible to make contributions. Be sure to consult the IRS or a tax professional for the most current income limitations and regulations.

Need Help or More Info?

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