Smart plans. Knowledgeable advisors.
FDIC insured
The flexibility of a Coverdell education savings account (ESA) makes it easy to start saving today. ESAs are designed to meet your needs as you provide the funds for a promising education. Comerica CD-ESAs provide investment alternatives with flexible terms, competitive rates and customized CD deposit options.
Visit a Comerica banking center near you to get started saving with a Coverdell ESA.
NOT FDIC insured - offered through Comerica Securities, Inc.
Whether a prepaid tuition or a college savings plan, a 529 plan may be used for education-related expenses at all accredited colleges and universities. Any person, married or single, relative or non-relative, can easily contribute. Plan details differ from state to state.4, 5 This versatile option lets you choose from multiple strategies to create a solution that works for your unique needs.
Tuition, room and board, and qualified expenses at accredited colleges5
Free from federal tax when used to pay eligible educational expenses.5
Can be used to gift assets - contributions may be free from federal gift taxes for the contributor5
Comerica has a partnership with Ameriprise Financial Services to provide financial planning services and solutions to our clients. We are not an investment client of Ameriprise, but we have a revenue sharing relationship with them that creates a conflict of interest.
Details on how we work together can be found on ameriprise.com/sec-disclosure.
| Coverdell ESA¹ ² ³ | 529 Savings Plan⁴ ⁵ | |
| Description: | Self-directed educational savings account (similar to an IRA) that is FDIC insured. You can contribute and withdraw at the time the student has educational costs and needs. |
Choose from multiple portfolio options. You can contribute and withdraw at the time the student has education costs. Investment choices are limited to state selections and are NOT FDIC insured. |
| Tax Benefits: | Earnings & withdrawals are tax-free if used for qualified expenses. |
Earnings & withdrawals are tax-free if used for qualified expenses. Depending on your state, you may also be eligible for state income tax deductions. |
| Used For: | Primary, secondary and college education qualified expenses, including tuition, room and board, mandatory fees, books and computers |
College education qualified expenses, including tuition, room and board, mandatory fees, books and computers |
| Age Limits: | Must be used by age 30, or transferred to another beneficiary or a 529 plan |
No age limits. Beneficiary can be any age. |
| Contribution Limits: | $2,000 per student per year (2023 & 2024) |
Varies by state, normally up to $15,000 per year |
| Income Limits: | Gross income over $220,000 as a married couple or $110,000 for other taxpayers can’t contribute |
No income limits for contributors |
Contact Comerica at 800.232.6983 to obtain an official statement that provides more information and that should be read carefully. You should consider the investment objectives, risks, charges and expenses associated with the 529 plan before investing.
1 Investing in a Coverdell Education Savings Account (ESA) does not guarantee that college costs will be met. Contributing to an ESA does not impact your eligibility to contribute to a Traditional, Roth, SEP or SIMPLE IRA.
2 Comerica Bank and its affiliates do not provide tax or legal advice. Please consult with your tax and legal advisors regarding your specific situation
3 Additional detail can be found in the Master Terms of Coverdell Education Savings Custodial Accounts
4 By investing in a 529 plan outside your state of residence, you may lose available state tax benefits. 529 plans are subject to enrollment, maintenance, administration/management fees and expenses. Make sure you understand your state tax laws to get the most from your 529 plan. If a withdrawal is made for any reason other than a qualified higher education expense, the earnings portion of the withdrawal will be subject to both state and federal income tax, and possibly a 10% federal tax penalty. The value of a 529 plan is subject to risks, which include market fluctuation based on the 529 plan’s portfolio, and economic, political and social circumstances. Additionally, the investor has limited shareholder rights, as there is not a direct ownership interest, which includes limited or no voting rights for the underlying securities. The plan reserves the right to terminate or make changes to the plan at any time. Such changes may include the acceptance of additional contributions or the ability to establish new accounts. Investment objectives, risks, charges and expenses associated with municipal fund securities should be considered before investing in municipal fund securities. The issuer’s official statement should be read carefully before investing.
5 Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
This information is being provided only as a general source of information and is not a solicitation to buy or sell any securities, accounts or strategies mentioned. The information is not intended to be used as the sole basis for investment decisions, nor should it be construed as a recommendation or advice designed to meet the particular needs of an individual investor. Please seek the advice of a financial advisor regarding your particular financial situation.
Clients contributing to a 529 Plan offered by a state in which they are not a resident, should consider, before investing, whether their, or their designated beneficiary(s) home state offers any state tax or other state benefits such as financial aid, scholarship funds or protection from creditors that are only available for investments in such state’s qualified tuition program.
Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.
Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.
Comerica Financial Advisors, a financial advisory practice of Ameriprise Financial Services, LLC
Ameriprise Financial and Comerica Financial Advisors are not affiliated.
© 2023 Ameriprise Financial, Inc. All rights reserved.
Site Navigation
