COVERDELL EDUCATION SAVINGS ACCOUNT (CESA)


A retirement program that is used to save post-tax funds for secondary education expenses. Contributions may be made at any time during the calendar year (but must be made by December 31st for the given tax year).

Features and Benefits of CESAs¹:

CESAs at The First National Bank of Long Island are invested in Savings Certificates with a term of one through six years. Minimum deposit to open is $500. The beneficiary must be under the age of 18 at account opening. CESAs may be transferred directly from one institution to another without penalty (unless a certificate is closed prior to maturity). CESA contributions are not aggregated with Traditional or Roth IRA contributions. Earnings are tax-free if used by the beneficiary for qualified education expenses. Contributions are not tax-deductible and must be made prior to December 31st for the given tax year. Rollovers between Traditional or Roth IRAs and CESAs are not permitted.

For more information, visit one of our Branch Locations nearest you or simply call (516) 671-4900 or (212) 566-1500.

*This offer is subject to change at anytime without notice to you.


1 Other restrictions apply for contributions, distributions, rollovers and IRA transfers.