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COVERDELL EDUCATION SAVINGS

With the cost of college tuition rising steadily, an Education Savings Account (formerly Education IRA) may be a great, tax-advantaged way to save for a child’s future.  A Coverdell Education Savings Account (ESA) allows tax- and penalty-free earnings when the money is used to pay for qualified primary, secondary, and higher education expenses.1 And you don’t have to be the child’s parent to contribute to the account—grandparents, aunts, uncles, and friends may contribute as well.

Coverdell Education Savings Account Benefits

  • Contribute up to $2,000 per year for each child under 18
  • Full contributions to the account are allowed apart from contributions to a Traditional IRA, Roth IRA, or employer-sponsored retirement savings plan
  • Choose from a variety of investment products, including stocks, bonds, and mutual funds through Wachovia Securities, and bank products such as FDIC-insured CDs2 and money market accounts
  • Receive professional guidance from a Wachovia Securities Financial Advisor, or choose to make your own investment decisions with Wachovia Securities Direct

You are eligible to contribute to an Education Savings Account if your Modified Adjusted Gross Income (MAGI) is $190,000 or less for married taxpayers or $95,000 or less for single taxpayers. Partial contributions allowed between $95,000-$110,000 if single and between $190,000-$220,000 for married filing jointly.

Open a Coverdell Education Savings Account
Apply online for a Coverdell Education Savings Account with Wachovia Securities.
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Learn more about the array of investment choices available to you at Wachovia Securities.
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10/06 0706-30841

1 Qualified Coverdell Education Savings Account distributions are not subject to state and local taxation in most states. Earnings accumulate tax- and penalty-free as long as the assets are used to pay qualified education expenses and are withdrawn before the child turns 30.

2 CDs are FDIC insured up to $100,000 per institution and offer a fixed rate of return, while the return and principal value of other investments will fluctuate with changing market conditions. A minimum deposit may apply. Generally, CDs may not be withdrawn prior to maturity.
Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

Securities and Insurance Products: Not Insured by FDIC or any Federal Government Agency; May Lose Value; Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate

Bank products, such as CDs and money market accounts, are offered by Wachovia Bank, N.A. Only deposit products are FDIC-insured.

Wachovia Securities Statement of Financial Condition
Audited - December 31, 2007 This document requires Adobe Acrobat Reader.
Unaudited - June 30, 2007 This document requires Adobe Acrobat Reader.

Wachovia Securities is not a tax or legal advisor.

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•North Carolina's National College Savings Program
•Online Brokerage Demo

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