Bronco's Routing #: 251480592
ESA is an account created as an incentive to help parents, and students, or anyone save for education expenses, including elementary, middle and high school, as well as vocational, college and graduate-level courses.
A Coverdell ESA from Bronco offers you a way to pay for qualified expenses that may include:
Certain restrictions apply. Visit the Internal Revenue Service's website for details.
Contributions to the account are not tax deductible, but amounts deposited grow tax-deferred free until distributed. Total contributions in “after-tax dollars” for the beneficiary of a Coverdell ESA cannot be more than $2,000 in any year, no matter how many accounts have been established. (Accounts for the same beneficiary may be established by more than one person.) There are also contribution limits for taxpayers based on the contributor’s Modified Adjusted Gross Income (MAGI).
The account can be "owned" by the person establishing it or the beneficiary. The beneficiary of a Coverdell ESA is someone who is under the age of 18 or is a special needs beneficiary. Any adult can establish a Coverdell ESA for any child under the age of 18, even if the designated beneficiary is not related to the person establishing the account. The portion representing earnings on the account will be taxable and subject to an additional 10% tax that can be avoided by rolling over the full balance to a Coverdell ESA for another family member.
A Bronco Coverdell ESA offers you:
Be sure to check with a qualified tax advisor when opening an IRA. More information on IRAs here.
If you’re looking for a beneficial way to save for your child’s or grandchild’s education, we can answer your questions and assist with opening your Coverdell Education Savings Account. Simply stop by any Bronco office or call us at 757.569.6000.