1-800-276-0025 dccu@dawsonco-opcu.com BANKING ELECTRONIC SERVICES OUR CREDIT UNION RESOURCES FAQS ONLINE BANKING LOG IN Coverdell A Coverdell Education Savings Account (CESA) allows you to make nondeductible contributions on behalf of a child each year until the child reaches the age of 18. The earnings generated on the CESA contributions remain tax deferred while held in the CESA. Then, when a child uses CESA assets to pay for qualified education expenses, the contributions and the earnings are distributed tax-free. Contact Us Unique Advantages Earnings are tax-free if used to pay for education expenses before the beneficiary reaches age 30, or later for a special needs beneficiary. Earnings used for any other purpose are taxable to the designated beneficiary. It encourages a regular savings program for a child’s education. Contributions Anyone can fund a child’s CESA, as long as his or her modified adjusted gross income (MAGI) falls below or within the income limits for the year. Those who are eligible to contribute may give to more than one CESA on behalf of multiple children, not to exceed the annual contribution limit of $2,000 (or less depending on (MAGI) per child. Likewise, any one child may not receive more than $2,000 total per year in CESA contributions. Modified Adjusted Gross Income Limits Single Filer: $95,000-$110,000 Married, Joint Filer: $190,000-$220,000 Nonqualified Distributions If a child withdraws more from their CESA than the cost of their qualified education expenses for the year, a portion of the distribution is taxable. The child must include the earnings attributable to the excess distribution in their gross income for the year, and pay a 10 percent penalty tax on the taxable earnings, unless a penalty tax exception applies (e.g., death or disability). If a child does not use the CESA assets or does not transfer or roll over the CESA assets to an eligible family member by the time they reach age 30*, the CESA is deemed distributed. the child must include the distributed amount in gross income for the year and pay a penalty tax on the earnings if the distribution is not used to pay for qualified education expenses. *The age 18 and age 30 limits do not apply to special needs individuals. Moving CESA Assets Funds can be moved from one family member’s account to another. There is no limit on the number of transfers you may make, but rollovers must be completed within 60 days of the distribution and may only occur once in a 12-month period. If you receive a military death benefit gratuity or a Service members’ Group Life Insurance payment, you may roll over the full amount without taxation to a CESA within one year of receipt. Contact Us To Get Started The Coverdell Education Savings Account (CESA) is designed solely to help pay education expenses. Qualified education expenses include tuition and fees, books, supplies and equipment, room and board, computers, and special needs services. Contact Us Today Contact Us 711 6th St, PO Box 1002 Dawson, MN 56232 1-800-276-0025 Routing Number 291273549 Secure File Upload Upload Debit Card Customer Services General Customer Service 866-596-3059 SHAZAM Short Code 72718 for sending fraud text messages SHAZAM Fraud Service 855-219-5399 Report a Lost/Stolen Card 800-383-8000 Credit Card Customer Services General Customer Service 877-848-5092 Report a Lost/Stolen Card 800-556-5678 Helpful Links NCUA Financial Literacy Resources DCCU Go Mobile Consider Direct Deposit NCUA – Your Insured Funds Share Insurance Estimator Copyright © 2014 Dawson CO-OP Credit Union. All rights reserved. Privacy Policy | e-Sign Disclosure | Contact Us | Board | Staff | CC Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S.Government Agency. NCUA Your Insured Funds