Education Savings

Father and daughter counting coins

Save for Every Stage of Your Child's Education
Get the help you need to save for education expenses during college — and before — with a Coverdell Education Savings Account (ESA). A Coverdell gives you tax advantages when you use the money for elementary, secondary or college education costs and provides more investment choices than a 529 Savings Plan.

Contribution Limitations:
The government limits the amount you can contribute to the account each year. Contributions cannot be made after the beneficiary reaches 18 years of age (unless the beneficiary has special needs).1

Single or Married Taxpayers Filing Separately
Modified Adjusted Gross Income Total Contribution Limit Per Child, Per Tax Year
$95,000 or less $2,000
$95,001 - $109,999 $1 - $1,999
$110,000 or more No contribution allowed
Married Taxpayers Filing a Joint Return
Modified Adjusted Gross Income Total Contribution Limit Per Child, Per Tax Year
$190,000 or less $2,000
$190,001 - $219,999 $1 - $1,999
$220,000 or more No contribution allowed

Contributions to a Coverdell ESA are not tax 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.

1 The age limit does not apply to a beneficiary with "special needs" (which generally means a beneficiary, who because of a physical, mental, or emotional condition, requires additional time to complete his or her education).
2 The contribution is tied to the contributor's MAGI and tax filing status.

How to Open a Coverdell ESA?
If you’re already a member, you can open an account at your local branch or call one of our friendly Member Service Representatives at 1-800-634-6632 (1-800-63-Honda).

The funds deposited at Honda Federal Credit Union are insured up to $250,000 by the National Credit Union Administration (NCUA), an agency of the federal government. That means they are backed by the full faith and credit of the United States government.

We insure an additional $250,000 through the American Share Insurance (ASI), a private insurance company.

If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-634-6632 for assistance. Also, all products, services and information available on this website are also available at any of our physical branches, where we would be happy to assist you further.
Part of the Family
  • Federally Insured by NCUA
  • Equal Housing Lender
  • America's Credit Unions
  • American Share Insurance
Honda FCU is registered with the Nationwide Mortgage Licensing System & Registry (NMLS#: 709435)