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A Coverdell Education Savings Account Can Help Secure Your Child’s Future

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Higher education can come with high costs. Fund it tax-free with a Coverdell Education Savings account.1,2

Let your contributions grow tax-free to help fund a beneficiary's (child) primary and post-secondary education expenses.

The purpose of a CESA is to fund the future cost of a beneficiary's (child) primary and post-secondary education at an eligible school, college, or vocational school.

Non-deductible contributions of up to $2,000 annually per designated beneficiary under age 18. The beneficiary may be a child, grandchild, or another eligible relative.

Distributions for qualified higher-education expenses, such as tuition, fees, books, supplies, equipment, and other related expenses, are both tax-free and IRS penalty-free.

Contributions must stop when the beneficiary reaches the age of 18, and funds must be distributed by age 30. If funds are not distributed, they can be rolled over into a new Coverdell account for the benefit of a different qualifying relative.

To learn more about this tax-free, IRS penalty-free savings option, contact Columbia Bank to connect with a representative. Visit a local branch or give us a call and begin saving with the Coverdell Education Savings Account today.

[1] See our schedule of fees for additional consumer account information. Early termination fee and contributions in excess of IRS limits subject to IRS penalties.

[2] Consult your tax advisor.

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Investments are NOT FDIC Insured, not Bank guaranteed, not a deposit, and not insured by any federal government agency. Investments may lose value.

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