Home > Bank > Savings > IRAs & Retirement > Coverdell Education Savings Account - Sandia Area

An account to help parents and students save for education expenses

Whether you're investing for a child, grandchild or even yourself, a Coverdell Education Savings Account - or 529 college savings plan - offers tax advantages, diverse investment options and high contribution limits to help you build your education savings.

Consider a 529 college savings plan for:

  • Tax-free growth potential
  • Federal (and often state) tax-free withdrawals for qualified higher education expenses1,2
  • Maintaining control over the account
  • Making contributions without age or income restrictions

1. To be eligible for favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, such withdrawals must be used for "qualified higher education expenses," as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax, as well as applicable state and local income taxes. Not intended as tax advice. Please consult a tax professional. The above descriptions are meant to be educational in nature. Certain restrictions apply to every type of IRAs to take full advantage of their favorable tax treatment. It's important to understand the requirements and limitations on the various IRAs. 

2. Section 529 plans are established by various states and are offered to residents of all states. Depending on the laws of the customer's home state, favorable tax treatment for investing in a Section 529 plan may be limited to investments made in a Section 529 plan offered by the customer's home state. Consult your personal tax or legal advisor before making tax or legal-related investment decisions.

Sandia Area Membership is required for all accounts.

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