First Foundation Education Account

It's never too early to start saving for your child's college education, especially when your funds could be growing tax-free in a First Foundation Coverdell Education Savings Account (CESA).

The First Foundation CESA is an account created to pay for the educational expenses of a "beneficiary." In general, the beneficiary has to be under age 18 when the account is established.

CESA Accounts - Save for College and Save on Taxes

The contributions to a CESA are not tax deductible, but money deposited in the account will grow tax-free until distributions are taken. If the distribution from an account is not more than the beneficiary's qualified education expenses, then the beneficiary will not owe federal income tax on the distributions. As long as it is used to pay for the beneficiary's college expenses, like tuition, books or room and board, the CESA encourages you to contribute because the money deposited earns tax free. This important benefit can provide considerably more college funds than other types of savings accounts.

Money in a CESA can help pay for educational expenses only at eligible schools. Virtually all accredited colleges, universities and vocational schools are eligible, as well as some higher education institutions outside the U.S. Eligible schools also include elementary and high schools.

Who Can Contribute to a Coverdale Education Savings Account?

Anyone who earns less than "modified adjusted gross income" (MAGI) limits established for CESA contribution eligibility in any tax year can contribute to a CESA, including the beneficiary. Annual contributions made to a qualified beneficiary are limited.

For more information, download our First Foundation Educational Savings Account product information sheet (PDF)

To learn more about this college investment opportunity, contact your First Foundation Bank Private Banker who will introduce you to one of our CESA Specialists.