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Save for College with an Education IRA

The Coverdell Education IRA (EIRA) is a great way to save for college. An EIRA allows you to set aside money for qualified post-secondary education expenses of a ‎designated beneficiary. Contributions to an education IRA and earnings from an EIRA account are tax-free when withdrawn. This allows you to pay for qualified education ‎expenses tax-free—expenses such as tuition, fees, books, equipment and supplies.

EIRA Eligibility and Requirements

  • Maximum EIRA contribution: $2,000 per child in a tax year.
  • Maximum is in addition to contributions to traditional and/or Roth IRAs‎.

If you already contribute to an IRA or Roth IRA, your contributions to an education IRA can be made on top of those other contributions.1

Mutual of Omaha Bank offers several Certificate of Deposit (CD) options for funding Coverdell IRAs, including fixed rate and variable ‎rate accounts.

1 Please check with your tax advisor for the benefits of an IRA in your specific situation.