The Coverdell education IRA is a great way to pay education costs for qualified post-secondary education expenses of a designated beneficiary. The maximum annual contribution you may contribute is $2,000. This amount is in addition to what you may contribute to your Traditional and/or Roth IRA. Keep in mind anyone can contribute money to an EIRA for the benefit of a person under the age of 18, even if that person has no earned compensation for that tax year. Distributions from a Coverdell IRA are tax-free when used for qualified education expenses.
Mutual of Omaha Bank offers several certificate of deposit (CD) options for funding Coverdell IRAs, including fixed rate and variable rate accounts.
To open an IRA or if you have any questions, please call 866.351.5646 (toll-free).