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Education IRA Savings Account

The purpose of an Education Savings Account is to save for a child’s education.  If the saved funds are spent on qualified education expenses, the ESA is intended to be tax-free and IRS penalty free for the designated beneficiary, who is the child.  The ESA has three participants to the plan: Depositor – the person making deposits to the account; Responsible party – the parent or legal guardian of the child; Designated Beneficiary – the child.  The Responsible party of the ESA may change the designated beneficiary provided that the new beneficiary is a qualified member of the family of the original beneficiary.

Please check with a tax advisor to find out about your tax implications.  There are many rules and restrictions with the Education Savings Account. Please see a bank representative to see if the product is right for you.