Coverdell Education Savings Accounts
Most of the American Funds, including the American Funds Portfolio Series℠, are available for Coverdell ESA investments.
You can contribute to a Coverdell ESA even if you don’t have earned income. The contribution is limited to $2,000 a year for each beneficiary until the age of 18.
The ability to contribute is phased out as your adjusted gross income increases from:
A Coverdell ESA can be used for education expenses such as tuition, books, room and board, computers, peripherals, software and internet access for kindergarten through high school, college and graduate school.
Earnings grow tax-free with the potential to help offset rising education costs.
The beneficiary can assume control at the age of majority — 18 or 21 in most states.
Most of the American Funds can be used for Coverdell Education Savings Accounts. Account owners can change investments as often as they want.
For help creating an investment mix tailored to your financial goals, contact your financial professional.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.