Coverdell Education Savings Accounts
The Hartford Coverdell
Like a 529 account, a Coverdell Education Savings Account (ESA) is a tax-advantaged savings account that is set up to help cover future education expenses. Earnings on a Coverdell grow tax deferred and proceeds are withdrawn tax-free for qualified education expenses at a qualified institution. Contributions are not tax deductible.
Qualifying beneficiaries, institutions and expenses
The account balances must be disbursed on qualified education expenses by the time the beneficiary is 30 years old or gifted to a family member of the beneficiary below the age of 30 in order to avoid taxes and penalties.
You can learn more about Coverdell accounts from the IRS*. Please see your financial advisor to learn more about investing in a Coverdell account with The Hartford.
*The IRS link will open in a separate window. The Hartford assumes no responsibility for content on third-party sites.
The Hartford offers a Coverdell Education Savings Account which invests exclusively in The Hartford Mutual Funds. Annual fees for this account are noted below.
|$0 - $9,999||$25|
|$10,000 - $49,999||$15|
|$50,000 or greater
These annual fees are in addition to any fees that you may pay as a shareholder of The Hartford Mutual Funds. Please click here for an application for The Hartford Coverdell Education Savings Account.
This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.