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College Savings Plan

Options for tackling college expenses

Coverdell Education Savings Account

The Coverdell Education Savings Account, or CESA, is a nondeductible account that features tax-free withdrawals for a very specific purpose - a child's primary, secondary or post-secondary education expenses.

  • Non-deductible account
  • Tax-free withdrawals for a child’s primary, secondary or post-secondary education
  • Unlike withdrawals from IRAs, distributions from this account are both penalty free and tax free
  • 2013 Contributions
    • Modified Adjusted Gross Income levels
      • Single filers
        • $95,000 or less: Full $2,000 contribution
        • Between $95,000 and $110,000: Partial contribution
        • $110,000 or more: No contribution
      • Married, joint filers
        • $190,000 or less: Full $2,000 contribution
        • Between $190,000 and $220,000: Partial contribution
        • $220,000 or more: No contribution
    • Contributions are not aggregated with your traditional or Roth IRA contributions

529 Plan/College Savings Plan

College Savings Plans, also called 529 Plans, are investment plans designed by each state to help families save for future college costs in tax-advantaged accounts.

  • Benefits
    • Funds grow tax-free in the account and if the beneficiary uses the funds for a qualified education expense, the funds are federal tax-free upon withdrawal
    • Contributor/owner may be eligible for tax deduction benefits at the state level, depending on the state’s plan.
    • Funds are no longer part of the owner’s estate even though the owner retains control of the funds and can change the beneficiary.
  • Eligibility
    • Anyone can contribute to a College Savings Plan for any beneficiary.
  • 2013 Contributions
    • Annual gift tax exclusion should be considered when contributing to a 529 plan
    • A maximum contribution per beneficiary is imposed currently as high as $350,000

Trust Representatives

Contact a CornerBank representative below to help secure your trust needs today!

Gary McCutcheon Gary L. McCutcheon
CFP®, MBA
Senior Vice President,
Asset Management 
Winfield		 Barbara J. Braa Barbara J. Braa
CTFA, MBA
Vice President,
Trust & Investment Officer
Lawrence
Brian Dutton Brian K. Dutton MBA,
Assistant Vice President, Asset Management
Winfield and Ark City		 Jeffery Wacker Jeff Wacker
Assistant Vice President,
Asset Management
Winfield, Douglass, and Wellington
Gene Heffron Gene Heffron
Senior Vice President,
Asset Management
Winfield and Wichita		    

Barbara J. Braa, CTFA, MBA

Vice President,
Trust & Investment Officer
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