Skip to content
  • For Individual Investors in the US Change
  • Contact us
    • Subscriptions
      • Select Preferences
      • Log in
  • Log in
search bar
Janus Henderson Investors
  • Products
        • Investment options

        • Mutual funds
        • ETFs
        • Filter by

        • Equities
        • Fixed income
        • Multi-asset
        • Sustainable
        • View

        • Prices and performance
        • Morningstar fee levels
        • Mutual fund distributions
        • Product literature
        • View all products
        • SUSTAINABLE MULTI-ASSET ALLOCATION FUND (JSMFX)

          Active allocation for a sustainable future.

          Learn more
          SUSTAINABLE MULTI-ASSET ALLOCATION FUND (JSMFX)
  • Insights
        • Explore insights

        • Analysis & studies
        • Features & outlooks
        • Timely & topical
        • Webcasts
        • Podcasts
        • View all insights
        • Market GPS

          2023 Investment Outlook:
          Finding the silver lining

          Explore
          GPS Map
        • Market GPS

          2023 Investment Outlook:
          Finding the silver lining

          Explore
          GPS Map
        • Analysis & studies
        • Features & outlooks
        • Timely & topical
        • Webcasts
        • Podcasts
        • View all insights
  • Planning
        • Tax and Estate

        • Understanding cost basis
        • Estate planning
        • Supplemental tax and fund distribution information
        • Know your tax forms
        • Tax form FAQs
        • Supplemental tax FAQs
        • Life Events

        • Moving or changing jobs
        • Getting married
        • New child
        • Divorce
        • Add an authorized trader
        • Death of a loved one
        • Retirement Planning

        • Build your strategy
        • Approaching retirement
        • In retirement
        • Retirement planner
        • Retirement resources
        • College Saving

        • Develop a college investment plan
        • Nearing college age
        • After graduation
        • College planner
        • Tools & Calculators
        • Investing basics
  • Account
        • Manage Your Investments

        • Log in to your account
        • Portfolio summary
        • Buy/Sell/Trade
        • Transaction history
        • Cost Basis
        • Statement & tax forms
        • Log in to your account
        • Information About

        • Forms and applications
        • Open a new account
        • Move assets to Janus Henderson
        • Choose the right account type
        • Investing Basics

        • How do I invest?
        • How mutual funds work
        • Building a sound portfolio
  • About us
        • About Janus Henderson Investors

        • Our people

        • Environmental, Social and Governance (ESG)

        • Diversity, Equity and Inclusion

        • Who we are
        • Our investment capabilities
        • Connecting with our clients
        • About Janus Henderson Investors info-graphic
        • We provide access to some of the industry’s most talented and innovative thinkers.

          Meet our teams
        • Find out how environmental, social and governance (ESG) considerations are embedded within our organization and investment principles.

          Learn more
        • See how diversity, equity, & inclusion are valued and supported at Janus Henderson.

          Learn more
        • About Janus Henderson
        • Our people
        • Environmental, Social and Governance (ESG)
        • Diversity, Equity and Inclusion
{{banner.link_text}}
For Individual Investors in the US

ACCOUNT TYPES

Coverdell Education Savings Account

Kids grow up fast, so the right investment strategy could help you keep up with the costs of higher education.

A Coverdell Education Savings Account (CESA) is an account in which the child owns the money, but a parent or legal guardian manages the account.

Open Account Online
Download Application

Consider this type of account if:

  • You plan on saving up to $2,000 per child, per year, specifically for elementary, secondary, and/or college expenses.
  • You have started saving for college early in your child's life.
  • As a donor, you are under the income limits to make contributions ($110,000 for single filers, $220,000 for married couples).
  • You are a parent or legal guardian who wants to open the account on behalf of your minor child who has a Social Security number.

Is a Coverdell ESA right for you?

This account is intended for the purpose of paying for your child’s education, and withdrawals are tax-free when used to pay for qualified education expenses.

Tax Features and Investments

What are the tax features? Expand

When you save with a CESA, your earnings grow tax-deferred.

Contributions are not tax-deductible, but as long as you spend the money on tuition, fees, books or other federally-approved education-related expenses, withdrawals may be tax free.

Any taxable distributions (amounts not used for qualified educational expenses) may result in a 10% penalty and tax on the earnings.

How much can I invest? Expand

The maximum annual contribution is $2,000 per student, per year until the child's 18th birthday.

Your adjusted gross income may limit your contribution amount as detailed in the contribution limit chart.

Contribution Limits for Coverdell Education Savings Accounts

Adjusted Gross Income of the Donor You can make...
Single Filers Married Filing Jointly
under $95,000 under $190,000 the maximum contribution
$95,000 - $109,999 $190,000 - $219,999 a partial contribution, refer to IRS Publication 970 for calculation
$110,000 and over $220,000 and over no contribution
What happens if I invest too much? Expand

There may be several methods to remedying an excess contribution, but it’s always best to consult a certified tax advisor to find which solution works best for your situation. Contact us to learn about your excess contribution options with Janus Henderson.

What are the investment minimums? Expand

The minimum initial investment to open an CESA at Janus Henderson is $100 with an automatic investment of at least $50. Without an automatic investment, the minimum initial investment is $1,000. Subsequent one-time purchases must be at least $50.

Are there any investment deadlines? Expand

Yes, you can contribute to a Coverdell Education Savings Account (CESA) for a specific tax year starting January 1 of that year and you must make all contributions for the tax year by the tax filing deadline, which is typically April 15 of the following year.

Generally, you cannot make contributions after that date even if you file an income tax extension.

Contributions cannot be made after the child reaches age 18, unless the child is a special needs student. Funds must be disbursed or rolled over by the child's 30th birthday. Accounts can potentially be rolled over to another immediate family member under the age of 30, if needed.

What are the fees for a Coverdell Education Savings account? Expand

There is no cost to open an account and no annual maintenance fees when account minimum thresholds are met.

Withdrawals and Helpful Information

How do I request an account withdrawal? Expand

Depending on the account options you have selected, the responsible individual may redeem shares by telephone, online or in writing.

Only the responsible individual can request withdrawals until the child takes ownership of the account.

Withdrawals and exchanges will be reported to the IRS on form 1099-Q and it is up to you to report qualified educational spending.

Am I required to take money out of the account? Expand

Yes. Assets must be used by age 30. If the funds are not used and aren't rolled over to another family member under age 30, the distributions may be taxable and subject to IRS penalty.

What other information might be helpful to know? Expand

Almost anyone is eligible to fund a CESA for a child, including a corporation or entity.

It is possible to contribute to a CESA while contributing to other types of accounts such as a Custodial Account or a 529 College Savings Plan. This might be an option if you contribute to an CESA, but would like to contribute more than the $2,000 maximum contribution per year.

The Janus  Henderson Coverdell Education Savings Account Disclosure Statement and Custodial Agreement provides complete details about a CESA at Janus Henderson.

Open a Coverdell Education Savings Account

Give the Gift of Education

Saving for your child's education may be one of the most important investments you'll ever make. Taking action now can help ensure there's plenty of time to save for schooling. Download an application or contact Janus Henderson for more information.

Open Account Online
Download Application

Related Content

COLLEGE SAVING

Develop a College Investment Plan

Create a blueprint and maximize the potential to meet your college savings goal.

Learn More

TOOLS & CALCULATORS

College Planner

Use the College Planner to assess tuition and fees, room and board and other expenses for a variety of colleges and universities across the U.S.

See Tool
  • United States
  • Financial Professionals
  • Individual Investors
  • Institutional
  • Contact Us
  • Investor Relations
  • Media Center
  • Careers
  • Foundation
  • Privacy
  • Site Security
  • Legal
  • Terms of Use
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • Podcast
  • Instagram

Investing involves risk, including the possible loss of principal and fluctuation of value.

An ESA should be considered a long-term investment. ESAs generally have expenses and account fees, which may impact the value of the account. Non-qualified withdrawals may be subject to taxes and penalties. Maximum contributions are subject to eligibility requirements. For more detailed information about taxes, consult IRS Publication 970 or a tax professional regarding personal circumstances.
Investors should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.

Janus Henderson Distributors US LLC

Janus Henderson Group plc ©

Close Notification
TOP
You are now leaving janushenderson.com

You are now leaving our site and entering a website not operated by or affiliated with Janus Henderson Investors. While we aim to point you to useful external websites, we cannot be responsible for their content, opinions, advice or accuracy, even if you utilise the services on the linked site to invest in our products.

The protection of your personal information on other websites is not governed by Janus Henderson Investors privacy policy and Janus Henderson Investors cannot be responsible for the privacy policies utilised on such third party sites, nor for the implementation of such policies by those third parties.

You should review the Terms and Conditions of third party websites and contact the operators of such sites if you have any queries.

You are now leaving Janus Henderson's website and will be redirected to the website of the Securities and Exchange Commission (the "SEC"). Money market funds are required to provide the SEC with a monthly electronic filing of more detailed portfolio holdings information on Form N-MFP.

Janus Henderson is not responsible for the content, accuracy or timeliness and does not make any warranties, express or implied, with regard to the information obtained from other websites. This link should not be construed as either a recommendation or offer to by or sell any securities.

Region

Country

Language

What type of investor are you?