Educational Savings Accounts - (CESAs)

The CESA allows individuals to invest funds for educational purposes. This trust or custodial account is created for the purpose of paying qualified education expenses of the designated beneficiary.

Why Should I Open a CESA?

Establish a CESA to pay qualified educational costs for a beneficiary. Contribute up to $2,000 annually, and invest in the assets that you know best. All earnings from the investments are tax-free, and all distributions are tax free if used for qualified educational expenses.

Eligibility

A CESA can be opened for a beneficiary who is under the age of 18 or for someone with special needs. Unlike other savings plans that require earned income, you don't need income to open a CESA. However, if you do have earned income you must fall within certain modified adjusted gross income limits (MAGI). Your MAGI for the year that you open the account must be less than $95,000-$110,000 ($190,000-$220,000 for a joint return).