How it works
For each beneficiary, you can open an account with as little as $50. A beneficiary can receive up to $2,000 total in contributions in after-tax dollars annually. The earnings on your contributions grow tax-free, and when it comes time to use the funds you've saved up, you can do so without having to pay any additional taxes. (There are a few other details. Chat with an Umpqua Associate or your tax advisor for additional info.)
An ESA can be used for elementary, secondary and post-secondary "qualified education expenses." These expenses include, tuition, room & board, books, tutoring, uniforms, other school fees, books & supplies, computers and internet access.
You can change the beneficiary of the account. A contribution must be made before the beneficiary turns 18, unless the beneficiary is a special needs beneficiary. You can also rollover any unused ESA funds, without penalty, to other family members under the age of 30 or a special needs beneficiary.
Fees you should know about
Yes, there are a few. Give us a call at 1-866-4UMPQUA or come into your neighborhood store and we can go over them with you.
Who can use the savings
The account can be opened by a parent or guardian, and contributions can come from parents, grandparents, relatives, friends or family members. Contributor adjusted gross income must be under the limit set for a given tax year to be eligible - see us for details on the current year's limits. The beneficiary of the account must use the funds before they turn 30.