Coverdell Education Savings Plans (CESAs)

Help your child’s college savings grow right along with them.

A Coverdell Education Saving Plan (CESA) is a smart way to save for your child’s education because the money you set aside can grow tax-free. What’s more, you can withdraw funds tax-free as long as the money is used to pay education expenses.

• Grow your child’s education funds tax-free.
• Covers primary and secondary educational expenses.

Who it’s for?

Parents who are looking for a smart way to help pay for their child’s primary, secondary, and college educational expenses by investing in an account where the money can grow tax-deferred.

What’s in it for you?

• State and federal tax-deferred growth on earnings for Wisconsin residents.
• Tax-free withdrawals for qualified education expenses.
• FDIC insured on North Shore Bank CDs.
• Automatic deposits allowed.
• No annual administration or maintenance fees.
• Can be consolidated with other Coverdell Education Saving Plans (CESAs)

What else you need to know?

• Qualified education expenses include tuition, books, supplies, required fees, and room and board expenses.
• Does not affect eligibility for a Hope Scholarship or Lifetime Learning Credit.
• Funds are considered an asset of the beneficiary.

What you need to know about eligibility and contributions.

• Your eligibility to contribute to a Coverdell Education Saving Plan (CESA) depends on your modified adjusted gross income. To be able to make a contribution, your income must fall within required limits. Learn more about the Coverdell Education Saving Plan (CESA).