Education Savings Accounts

ESAs help you save along the way for your child’s education. You can contribute up to $2,000 a year towards an ESA where your child is the beneficiary up until he or she is 18. And while contributions aren’t tax-deductible, the interest they earn is tax free if they are used to pay eligible education expenses. It’s important to consult with a tax professional to ensure receiving the best possible tax benefits.

With college costs increasing at twice the rate of inflation, it is important to start saving early. Interest working for you now in a regular savings program is much better than having interest work against you in the future in the form of education loans. Use our college savings calculator to determine how much you should be saving for college on a regular basis.

To set up and make a contribution to ESA you must meet all of the following requirements:

• Your beneficiary (child) must be a member at Suncoast Credit Union and
• Must be under the age of 17 or a special needs beneficiary and
• You (the contributor) don't need to earn income, but if you do earn income, your modified adjusted gross income (MAGI) must meet specific income eligibility range qualifications established by the IRS.

Deposits for an ESA may be made in person, by mail, over the phone or through payroll deduction. Withdrawals must be made with a special withdrawal form. They are taken from the contributions first, then the interest.

Withdrawals from an ESA can be rolled back into the same account or a different ESA once every 365 days.

Yes, an ESA held at another institution can be transferred to an Education Savings Account at Suncoast without incurring a tax liability.