Form 5305-EA 

(Rev. October 2016) 

Department of the Treasury 

Internal Revenue Service 

Coverdell Education Savings Custodial Account

(Under section 530 of the Internal Revenue Code) 

Do not file

with the Internal 

Revenue Service 

Name of depositor 

Check if amendment . . . ▶

Name of designated beneficiary 

Address of designated beneficiary Date of birth of designated beneficiary 

Name of responsible individual (generally the parent or guardian of the designated beneficiary) 

Address of responsible individual 

Name of custodian Address or principal place of business of custodian 

The depositor named above is establishing a Coverdell education savings account under section 530 for the benefit of the designated 

beneficiary exclusively to pay for the qualified elementary, secondary, and higher education expenses, within the meaning of section 530(b)(2), 

of such designated beneficiary. 

The depositor assigned the custodial account dollars ($ ) in cash. 

The depositor and the custodian make the following agreement: 

Article I 

The custodian may accept additional cash contributions provided the designated beneficiary has not attained the age of 18 as of the date 

such contributions are made. Contributions by an individual contributor may be made for the tax year of the designated beneficiary by the due 

date of the beneficiary’s tax return for that year (excluding extensions). Total contributions that are not rollover contributions described in 

section 530(d)(5) are limited to $2,000 for the tax year. In the case of an individual contributor, the $2,000 limitation for any year is phased out 

between modified adjusted gross income (AGI) of $95,000 and $110,000. For married individuals filing jointly, the phase-out occurs between 

modified AGI of $190,000 and $220,000. Modified AGI is defined in section 530(c)(2). 

Article II 

No part of the custodial account funds may be invested in life insurance contracts, nor may the assets of the custodial account be 

commingled with other property except in a common trust fund or a common investment fund (within the meaning of section 530(b)(1)(D)). 

Article III 

1. Any balance to the credit of the designated beneficiary on the date on which he or she attains age 30 shall be distributed to him or her 

within 30 days of such date. 

2. Any balance to the credit of the designated beneficiary shall be distributed within 30 days of his or her death unless the designated 

death beneficiary is a family member of the designated beneficiary and is under the age of 30 on the date of death. In such case, that 

family member shall become the designated beneficiary as of the date of death. 

Article IV 

The depositor shall have the power to direct the custodian regarding the investment of the above-listed amount assigned to the custodial 

account (including earnings thereon) in the investment choices offered by the custodian. The responsible individual, however, shall have the 

power to redirect the custodian regarding the investment of such amounts, as well as the power to direct the custodian regarding the 

investment of all additional contributions (including earnings thereon) to the custodial account. In the event that the responsible individual 

does not direct the custodian regarding the investment of additional contributions (including earnings thereon), the initial investment direction 

of the depositor also will govern all additional contributions made to the custodial account until such time as the responsible individual 

otherwise directs the custodian. Unless otherwise provided in this agreement, the responsible individual also shall have the power to direct 

the custodian regarding the administration, management, and distribution of the account. 

Article V 

The “responsible individual” named by the depositor shall be a parent or guardian of the designated beneficiary. The custodial account shall 

have only one responsible individual at any time. If the responsible individual becomes incapacitated or dies while the designated beneficiary 

is a minor under state law, the successor responsible individual shall be the person named to succeed in that capacity by the preceding 

responsible individual in a witnessed writing or, if no successor is so named, the successor responsible individual shall be the designated 

beneficiary’s other parent or successor guardian. Unless otherwise directed by checking the option below, at the time that the designated 

beneficiary attains the age of majority under state law, the designated beneficiary becomes the responsible individual. If a family member 

under the age of majority under state law becomes the designated beneficiary by reason of being a named death beneficiary, the responsible 

individual shall be such designated beneficiary’s parent or guardian. 

Option (This provision is effective only if checked): The responsible individual shall continue to serve as the responsible individual for the 

custodial account after the designated beneficiary attains the age of majority under state law and until such time as all assets have been 

distributed from the custodial account and the custodial account terminates. If the responsible individual becomes incapacitated or dies after 

the designated beneficiary reaches the age of majority under state law, the responsible individual shall be the designated beneficiary. 

Cat. No. 25204K Form 5305-EA (Rev. 10-2016)
Form 5305-EA (Rev. 10-2016) Page 2 

Article VI 

The responsible individual may or may not change the beneficiary designated under this agreement to another member of 

the designated beneficiary’s family described in section 529(e)(2) in accordance with the custodian’s procedures. 

Article VII 

1. The depositor agrees to provide the custodian with all information necessary to prepare any reports required by section 530(h). 

2. The custodian agrees to submit to the Internal Revenue Service (IRS) and responsible individual the reports prescribed by the IRS. 

Article VIII 

Notwithstanding any other articles which may be added or incorporated, the provisions of Articles I through III will be controlling. Any 

additional articles inconsistent with section 530 and the related regulations will be invalid. 

Article IX 

This agreement will be amended as necessary to comply with the provisions of the Code and the related regulations. Other amendments 

may be made with the consent of the depositor and the custodian whose signatures appear below. 

Article X 

Article X may be used for any additional provisions. If no other provisions will be added, draw a line through this space. If provisions are 

added, they must comply with applicable requirements of state law and the Internal Revenue Code. 

Depositor’s signature Date 

Custodian’s signature Date 

Witness’ signature Date 

(Use only if signature of the depositor or the custodian is required to be witnessed.) 

General Instructions 

Section references are to the Internal Revenue 

Code unless otherwise noted. 

What's New

Military death gratuity. Families of soldiers who 

receive military death benefits may contribute, 

subject to certain limitations, up to 100 percent 

of such benefits into an educational savings 

account. Publication 970, Tax Benefits for 

Education, explains the rules for rolling over the 

military death gratuity and lists eligible family 

members.

Purpose of Form 

Form 5305-EA is a model custodial account 

agreement that meets the requirements of 

section 530(b)(1) and has been pre-approved by 

the IRS. A Coverdell education savings account 

(ESA) is established after the form is fully 

executed by both the depositor and the 

custodian. This account must be created in the 

United States for the exclusive purpose of 

paying the qualified elementary, secondary, and 

higher education expenses of the designated 

beneficiary. 

If the model account is a trust account, see 

Form 5305-E, Coverdell Education Savings 

Trust Account. 

Do not file Form 5305-EA with the IRS. 

Instead, the depositor must keep the completed 

form in its records. 

Definitions 

Custodian. The custodian must be a bank or 

savings and loan association, as defined in 

section 408(n), or any person who has the 

approval of the IRS to act as custodian. Any 

person who may serve as a custodian of a 

traditional IRA may serve as the custodian of a 

Coverdell ESA. 

Depositor. The depositor is the person who 

establishes the custodial account. 

Designated beneficiary. The designated 

beneficiary is the individual on whose behalf the 

custodial account has been established. 

Family member. Family members of the 

designated beneficiary include his or her 

spouse, child, grandchild, sibling, parent, niece 

or nephew, son-in-law, daughter-in-law, fatherin-law, mother-in-law, brother-in-law, or sister-inlaw, and the spouse of any such individual. A first 

cousin, but not his or her spouse, is also a 

“family member.” 

Responsible individual. The responsible 

individual, generally, is a parent or guardian of 

the designated beneficiary. However, under 

certain circumstances, the responsible individual 

may be the designated beneficiary. 

Identification Numbers 

The depositor’s and designated beneficiary’s 

social security numbers will serve as their 

identification numbers. If the depositor is a 

nonresident alien and does not have an 

identification number, write “Foreign” on the 

return for which is filed to report the depositor's 

information. The designated beneficiary’s social 

security number is the identification number of 

his or her Coverdell ESA. If the designated 

beneficiary is a nonresident alien, the designated 

beneficiary’s individual taxpayer identification 

number is the identification number of his or her 

Coverdell ESA. An employer identification 

number (EIN) is required only for a Coverdell 

ESA for which a return is filed to report unrelated 

business income. An EIN is required for a 

common fund created for Coverdell ESAs. 

Specific Instructions 

Note: The age limitation restricting contributions, 

distributions, rollover contributions, and change 

of beneficiary are waived for a designated 

beneficiary with special needs. 

Article X. Article X and any that follow may 

incorporate additional provisions that are agreed 

to by the depositor and custodian to complete 

the agreement. They may include, for example, 

provisions relating to: definitions, investment 

powers, voting rights, exculpatory provisions, 

amendment and termination, removal of the 

custodian, custodian’s fees, state law 

requirements, treatment of excess contributions, 

and prohibited transactions with the depositor, 

designated beneficiary, or responsible individual, 

etc. Attach additional pages as necessary. 

Optional provisions in Article V and Article VI. 

Form 5305-EA may be reproduced in a manner 

that provides only those optional provisions 

offered by the custodian. 

Form 5305-EA (Rev. 10-2016)