| Description |
Helps individuals save for retirement. |
Same as Traditional IRA, but paid with after-tax dollars. |
Helps families save for children's education expenses. |
| Maximum Annual Contributions |
$7,000 |
$7,000 |
$2,000 annually per child until age 18, unless child has special needs. |
| Catch-up Contributions (Ages 50+) |
$1,000 |
$1,000 |
N/A |
| Tax-Deferred Earnings |
Yes |
Yes |
Yes |
| Tax-Deductable Contributions |
Available.
Talk with an advisor.
|
No |
No |
|
Rollover or Transfer
|
Yes, but not to a CESA.
|
Yes
|
Yes, but only to another CESA.
|
|
Distributions
|
- Required minimum distributions at age 73.
- 10% penalty tax for early distributions.
- Distributions subject to tax.
|
- No required minimum distributions.
- 10% penalty tax for early distributions.
- Distributions are tax free.
|
- Distributions are tax free when used for education expenses.
|
