Coverdell Educational Accounts
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An investment tool created for the purpose of paying for the future cost of a child's primary or secondary education. The plan allows total after-tax contributions of $2,000 per year for each child until they reach the age of 18. These contributions and their subsequent earnings are tax-free when withdrawn to pay for qualified education expenses.
What Is A Qualified Education Expense?
A qualified education expense is one that is required for the enrollment or attendance by your child at an eligible educational institution, including elementary, secondary or post-secondary. These expenses include tuition, fees, books, supplies, and equipment.
Who Can Contribute To An Education Savings Account?
Almost anyone can contribute with two key limitations:
- Each child can receive a total of $2,000 per year in contributions from all sources. It does not make a difference is done in a single account or multiple accounts designed to benefit the same child.
- A person may be limited in the amount of their contribution if their modified adjusted gross income exceeds $95,000 for single filers or $190,000 for joint filers. Above these income levels, the ability to contribute is phased out. If income exceeds $110,000 for single files, or $220,000 for joint filers, no contribution is allowed.
The ESA does not specify that the contributor must be a member of the family. With this broad range of potential contributors, more than one person may contribute for the same child. A coordinated effort should be encouraged to avoid excess contributions.
Coming soon: Coverdell Educational Account Brochure
Every year, WEPCO offers to its members a $1,000 Scholarship. Rules for entry are:
- must be a member of WEPCO
- must apply using our Scholarship Application
- must write a 300 word or less count brief statement of your aspirations, goals and why WEPCO should choose you for our $1000 Scholarship.
- provide a copy of high school/college transcript (original is not required)
- must be attending college in the fall of the year of application
The Scholarship Applications will be available January 2nd each year at any branch location. Scholarship winner will be chosen each year by May 25.
Get help paying for college
You can submit a free application through Free Appication for Federal Student Aid (FAFSA). Learn more about FAFSA by clicking HERE. To submit your FAFSA application, you may click here to be directed to their site.
Helpful Links to College Prep and Educational Website.1
- College Prep Checklist
- Help preparing for College
- Federal Aid First
- FASFA Filing Options
- Repaying your student loans
- College Savings Calculator
1All site links provided by FASFA.ed.gov