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Coverdell Education Savings Accounts (CESA)

Save for your child’s education, and reap tax savings, too!

First Commercial Bank, N.A (USA) offers CESA (formally known as Education IRA) – a tax-advantaged way to help you pay for the future costs of a child's education expenses. Parents, grandparents – anyone at all – may contribute to a CESA to cover certain elementary school, secondary school, and college expenses.

Withdrawals are tax- and penalty-free as long as they are used only for qualified education expenses, up to permitted limits. Qualified expenses may include tuition, fees, tutoring, books, and supplies — even the purchase of computer technology or equipment or Internet access used by the student and family when the student is in school.

CESAs may affect other student savings programs, such as federal financial aid. To learn more, please consult a financial or tax professional.

CESAs from First Commercial Bank, N.A (USA) offer these benefits:

• Choose from a savings or a wide range of CD terms
• Tax-free earnings on after-tax dollars¹
• Tax-free withdrawals for qualified education expenses
• The ability to contribute until the beneficiary turns 18
• Rollover of unused account funds, without penalty, to other family members under age 30
• Non-deductible contributions may be made annually to each child's account
• The deadline for contributions is the same as the contributor's tax filing deadline, not including extensions
• Contributions cannot be made for a designated beneficiary who is over 18 years of age (unless the beneficiary is of special needs)
• Contribution Limit of $2,000²

For current rates stop by any branch location or call +1 601 282 9653  (Rest of the World and Mainland).

1. Withdrawals are tax and penalty free if used for qualified education expenses. Funds must be fully withdrawn when the beneficiary reaches age 30, and any amounts not used for qualified education expenses are subject to an additional 10% tax penalty.

2. Based on an IRS formula, the allowed contribution is reduced when AGI (adjusted gross income) exceeds these limits.