Coverdell ESA
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Open
Application and account options
Account application
Use this application to open a Coverdell Education Savings Account (ESA).
Complete the Coverdell ESA Application.Account options
Log in to Client Accounts to add or update account options, like automatic investments, exchange plans or rebalance plans. Use the Coverdell ESA Account Options form when adding other options, like contributions or distributions via Automated Clearing House (ACH).
Log in to Client Accounts.
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For eligibility, funding guidelines and other information about opening a Coverdell ESA, visit Opening Coverdell ESAs.
Rollovers and transfers
Open a Coverdell ESA with funds from another Coverdell ESA via transfer
To open a Coverdell ESA with funds from another Coverdell ESA, submit this transfer form along with the application. Contact the entity holding the assets to determine whether a signature guarantee is required.
Complete the Coverdell ESA Request for Transfer of Assets.Open a Coverdell ESA with funds from another Coverdell ESA via rollover
If an authorized person has taken receipt of the funds from another Coverdell ESA, the investment into the new account is considered a rollover. Submit this rollover form with the application.
Note: Only one rollover per consecutive-12-month period is permitted. Assets must be rolled over within 60 days of receipt.
Complete the Indirect Rollover Request.
Open a Coverdell ESA via a gift of shares
Submit this form with the application to transfer existing American Funds shares into a new Coverdell ESA.
Complete the Gift of Shares Request.For additional information on moving funds, how rollovers affect your clients’ taxes and more, visit Coverdell ESA transfers and rollovers.
Common questions
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Update
Update client’s personal information
Update authorized person’s name
Complete this form and submit with supporting documentation. See the form for requirements.
Complete the Name Change Request.
Update authorized person’s address
Update the address via the authorized person’s online account. Use the options on the right side of the page.
Note: There is a 10-calendar-day hold to process a distribution to the new address unless the distribution request is submitted in writing with a signature guarantee.
Log in to Client Accounts.
Update authorized person’s contact information
The authorized person’s email address and/or phone number can be updated on DST Vision or by contacting us.
Log in to DST Vision.If the authorized person has experienced a major life event, visit Life events for checklists to assist with any account updates they may need to consider.
Add/update authorized person’s bank account
Link a bank account to buy shares
Add or update the bank information via the authorized person’s online account. Use the options on the right side of the page.
Log in to Client Accounts.Link a bank account to sell shares
Use this form.
Note: Unless the form is signature guaranteed, there is a 10-calendar-day wait to process a distribution to the new bank account.
Complete the Add/Update Bank Information form.
For eligibility, restrictions, requirements and more, review Managing client banking information.
Account registration changes
Change an authorized person
Submit a signature guaranteed letter of instruction from the current authorized person that includes:
- The account number
- Instructions to change the authorized person
- The first and last name of the new authorized person
The letter should be submitted with an application.
Complete the Coverdell ESA Application.
Change a recipient
Submit a signature guaranteed letter of instruction from the current authorized person that includes:
- The account numbers for the sending and receiving accounts (if available)
- The new recipient’s name, date of birth, Social Security number, address and citizenship (if not already on file)
- Instructions to transfer to the new recipient
If the assets are being transferred to a new account, the letter should be submitted with an application.
Mail a letter of instruction to Capital Bank and Trust Company.Designate or update beneficiaries
Use this form.
Complete the Coverdell ESA Beneficiary Change form.For eligibility for authorized persons, recipients and beneficiaries and more, review Managing Coverdell ESAs.
Common questions
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Transact
Contributions
Make a one-time contribution online
Access the client’s account online and click Buy. Be sure to have the client’s bank information on hand if it’s not already on file.
Log in to Client Accounts.
Make a one-time contribution via check
Checks should be made payable to Capital Bank and Trust Company (CB&T). Include the account number and investment instructions. Mail the check to the service center near you.
Find a service center.Set up automatic contributions
Access the client’s account online to add or update an automatic investment plan and click Automatic Transactions.
Log in to Client Accounts.
Gift of shares
Use this form to gift shares to a Coverdell ESA. If your client wants to receive a reduced breakpoint on a contribution made as a gift of shares, be sure to send a letter of instruction. Refer to Gift of shares for additional information.
Complete the Gift of Shares Request.
For additional details about contribution maximums, deadlines and more, visit Coverdell ESA contributions.
Distributions
Distribute funds to the authorized person
Funds can be sent via check or Automated Clearing House (ACH) if the client’s bank account is already linked. The distribution will be reported under the recipient’s Social Security number (SSN). Access the client’s account online and click Sell.
Log in to Client Accounts.
Distribute funds to the recipient
Funds can be sent via check or ACH if the recipient’s bank information is already linked and the distribution is $125,000 or less. The distribution will be reported under the recipient’s SSN. Access the client’s account online and click Sell.
Log in to Client Accounts.
Distribute funds to the school
Funds can be sent via check to an eligible educational institution by phone. You will need the name of the institution, its billing address (which could be different from the physical address) and the beneficiary’s student ID number.
Set up automatic distributions
Funds can be sent automatically by setting up an automatic distribution plan and can be sent via ACH or check.
Complete the Coverdell ESA Distribution Request.
For distribution options, how distributions affect your client’s tax reporting and more, visit Coverdell ESA distributions and tax information.
Exchanges and rebalances
Complete a one-time exchange or rebalance
A one-time exchange or rebalance can be processed by logging in to Client Accounts and selecting the appropriate option: Exchange or Rebalance.
Log in to Client Accounts.Set up an automatic exchange or rebalance plan
Automatic exchange and rebalance plans can be set up or modified online. Access the client’s account and click Automatic Transactions.
Log in to Client Accounts.For additional details about one-time and automatic exchanges and rebalances, visit Coverdell ESA exchanges and rebalances.
Rollovers and transfers
Moving an external Coverdell ESA to a CB&T Coverdell ESA
Use this form to request a transfer of an external Coverdell ESA to a CB&T Coverdell ESA. Contact the entity holding the assets to determine whether a signature guarantee is required. If your client does not have an existing CB&T Coverdell ESA account, include the Coverdell ESA Application.
Complete the Coverdell ESA Request for Transfer of Assets.Moving assets from a CB&T Coverdell ESA into a Capital Group CollegeAmerica® account
Complete this form to move CB&T Coverdell ESA assets to a CollegeAmerica account. If your client does not have an existing CollegeAmerica account, include the CollegeAmerica Account Application.
A signature guarantee is required:- For distributions over $250,000
- If the ESA owner is not the owner of the CollegeAmerica account
- If the ESA recipient is not the beneficiary of the CollegeAmerica account
Complete the Coverdell ESA Distribution Request.
Rollover into an existing CB&T Coverdell ESA
If an authorized person has taken receipt of the funds from another Coverdell ESA, the investment is considered a rollover. Complete this form and return it with a personal check made payable to Capital Bank and Trust Company. Include the account number and investment instructions.
Note: The authorized person can roll over all or part of a Coverdell ESA, provided the recipient hasn’t turned 30 at the time of the rollover distribution. Only one rollover per consecutive-12-month period is permitted, and the assets must be rolled over within 60 days of receipt.
Complete the Indirect Rollover Request.
For additional information on moving funds, how rollovers may affect your client’s taxes and more, visit Coverdell ESA transfers and rollovers.
Common questions
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