Invest in your child’s education

A Coverdell ESA is the perfect tool for saving money to pay for a child’s educational expenses — from kindergarten through college

Coverdell ESA
The Run Down
  • Great interest rates
  • Perfect account when saving for a child’s education
  • No maintenance fee
  • No fee to transfer funds in and out of Alliant
  • Deposit is insured up to $250,000 by NCUA8
  • Maximum contribution of $2,000 per year
  • Transferred to IRS-defined qualified family members if not used by beneficiary
  • Dividends compounded every month 
  • Child (beneficiary) must be an Alliant member
  • Earnings are tax free
Rates
1.90 %
APY
1.884 %
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Tax-advantaged education savings

Coverdell Education Savings Accounts let you grow your savings free from federal taxes. You take money out of the account tax-free73, as long as you are spending the money on your child's educational expenses.

How much can you save?

You can save up to $2,000 per child, per year in your Coverdell Education Savings Account. You’re allowed to save for your child until they reach age 18.

Keep in mind that there are some restrictions based on your income, and you may be able to contribute for a child beyond 18 years old if they have special needs. 

What can I pay for?

To spend money from your Coverdell ESA tax-free, make sure you use it for qualifying education expenses such as:

  • Tuition and fees
  • Books and supplies
  • Computer equipment that will be used for school
  • Transportation

Room and board may also be covered in some cases. For more details about what qualifies as an education expense, check out the Coverdell Education Savings Account Rules from the IRS.

Who's eligible for a Coverdell ESA?

Any child under 18 is eligible. Your Coverdell ESA account can be established and funded right up until their 18th birthday. Students with special needs may be eligible for contributions beyond their 18th birthday.

Two easy steps to open your Alliant Education Savings Account
  1. Your child's not a member of Alliant? No problem! Simply complete the membership application.
  2. Complete the Coverdell ESA application and beneficiary forms available on our website.

Annual Contribution Limits

2016 $2,000

2017

$2,000

Coverdell Education Savings Account Rates

1.90 %
APY
1.884 %

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Coverdell ESA FAQs

Where do I send checks for deposit to my Alliant IRA account?

Mailing Address 
Alliant Credit Union
Attn: IRA Dept.
P.O. Box 66945
Chicago, IL 60666-0945

Overnight Service
Alliant Credit Union
Attn: IRA Dept.
11545 W. Touhy Avenue
Chicago, IL 60666
773-462-2291

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