Skip nav to main content.
×
cover-art
Pearl Hawaii Credit Union
Android GET - On the App Store
×
cover-art
Pearl Hawaii Credit Union
Apple GET - On the App Store

A | Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed.

-The beneficiary will not owe tax on the distributions if they are less than a beneficiary’s qualified education expenses at an eligible institution.

-This benefit applies to qualified higher education expenses as well as to qualified elementary and secondary education expenses.

-May be used for qualified education expenses, such as tuition and fees, required books, supplies and equipment and qualified expenses for room and board.

-The Hope and lifetime learning credits can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses are not used for both benefits.