Coverdell IRA


Coverdell IRAs are designed specially for higher education needs. Your nondeductible annual contributions are taken after taxes and withdrawals are TAX FREE for qualified purposes.

Eligibility - Married Couples filing jointly with a combined income of up to $150,000 or single filers with income of up to $95,000.

Contributions - Contributions can be made by parents, grandparents, or even the child up to $2000 per year. The child must be under the age of 18.

Qualified Distributions - Withdrawals after 5 years are tax free and penalty free if used for qualified expenses within designated limits:

  • Tuition
  • Books
  • Supplies
  • Equipment
  • Fees

All funds must be distributed by the beneficiaries 30th birthday. Funds not used by one child can be transferred to another child in the same family without taxes or penalties.

 
IRA Certificate Rates
Coverdell
Dividend Rate
APY*
Min. Initial Deposit
Min. Balance¤

06 - 11 Months
1.00%
1.01%
$500.00
$500.00
 
12 - 23 Months
1.30%
1.31%
$500.00
$500.00
 
24 - 35 Months
1.50%
1.51%
$500.00
$500.00

* Annual Percentage Yeild
¤ Minimum average monthly daily balance to avoid service fees.
All rates are subject to change without notice and are effective as of September 4, 2018.

IRA certificate rates are compounded and paid monthly.

If you need more information about this IRA, please email New Accounts at newaccounts@hificu.com or call 1-808-832-8700.