Education IRA

Formerly known as Education IRAs (Individual Retirement Account), Coverdell Education Savings Accounts (CESAs) are nondeductible college savings plans that allow tax-free withdrawals for a child's education expenses from birth to age 30. The total aggregate contribution into a CESA on behalf of a child is $2,000 annually.

While Traditional IRAs do permit higher education distributions, they are penalty free but are not tax free. The same distribution from a Roth IRA or CESA is both penalty free and federal income tax free.

Begin saving for your child’s education by contacting us and becoming a member at Connexus today!

Education Individual Retirement Account (IRA) Benefits:

Once you've selected a plan to fit your needs, you decide on the investment:

IRA Supreme

This investment works similar to a regular savings plan, as the funds will be easily accessible and you are not locked into a term. Minimum deposit is $100, unless you perform payroll contributions, in which case there is no minimum. Contributions may also be made via direct deposit.

IRA Certificate

Similar to other certificates offered by your credit union, this investment plan offers a higher interest rate than the IRA Supreme, but requires that you commit your funds for a specified term. Minimum deposit is $500.

IMPORTANT: Because these accounts have many different features and the deposits are based on your personal tax situation, contact your tax or legal professional or the IRS for specific tax information or facts about state or local income taxes. This is intended to provide general information on federal regulations pertaining to Traditional and Roth IRAs. It is not meant to provide legal advice or individual tax recommendations.