Coverdell Education Savings Accounts
Saving for college can be a daunting task. Fortunately for you, BancorpSouth Wealth Management has several ways to help you accomplish this savings goal and the Coverdell Education Savings Account could be the right way for you.
Receive tax advantages that allow your money to work harder for you.
Feel safe knowing our best investment professionals are handling your money.
Our advisors bring you a varied background in investment management so that you can put your trust in us.
- Can be used for costs associated with elementary or high school education
- Simple and easy way to save
- Large yearly deposits are not required
Features and Benefits
- Account may be owned by the student or parent of the student
- Contributions may be made for the beneficiary up to age 18
- Coverdell accounts may be rolled over into a Coverdell account of a family member
- No age limit for special needs beneficiaries
- Earnings accumulate tax free
- Distributions are tax free as long as they are used to cover qualified educational expenses such as tuition, books, tutoring, related supplies, room and board, uniforms, transportation and computers for primary, secondary, and post-secondary schools
Requirements and Fees
- Maximum yearly contribution amount from all sources of $2,000
- Money must be used by the time the beneficiary is age 30 or the earnings will be taxed as ordinary income plus a 10% penalty.
- Contributions must be made in the form of cash. No stocks, bonds or other savings vehicles are permitted.
Not a Deposit.
Not Insured by any Government Agency.
Not Guaranteed by the Bank.
May go Down in Value.
Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA and SIPC. Infinex and BancorpSouth Bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.