Form 5498-ESA: Coverdell ESA Contribution Information
Report contributions to Coverdell Education Savings Accounts.
Filing Deadline
May 31 (to beneficiary and IRS) - no extension for paper filing
Contribution Limit
$2,000 per beneficiary per year
Age Limit
Beneficiary must be under age 18 (with exceptions)
Overview
Form 5498-ESA is issued by Coverdell Education Savings Account trustees to report contributions made to the account during the year and the fair market value of the account as of December 31.
Coverdell ESAs allow up to $2,000 in annual contributions per beneficiary for education expenses from K-12 through college. Contributions are not deductible but grow tax-free.
Who Must File
Required Filers
- •Coverdell ESA trustees and custodians
- •Must file if any contributions were made during the year
- •Must file if FMV on December 31 was over $0
- •Banks, brokerages, and financial institutions offering ESAs
Form Structure & Instructions
Here's what information is required in each section:
Contribution Information
ESA contributions and account value
Important Filing Notes
$2,000 Annual Limit
Total contributions for a beneficiary from all sources cannot exceed $2,000 per year. Excess contributions are subject to 6% excise tax each year until corrected.
Age 18 Contribution Deadline
Contributions generally must stop when beneficiary turns 18, except for special needs beneficiaries. Contributions can be made until April tax deadline for prior year.
Income Phase-Out
Contribution eligibility phases out for higher incomes: $95,000-$110,000 (single) or $190,000-$220,000 (married filing jointly). These limits apply to contributor, not beneficiary.
K-12 and College Expenses
Unlike 529 plans which limit K-12 to tuition, Coverdell ESAs can be used tax-free for K-12 tuition, books, supplies, equipment, tutoring, and certain other expenses.
Coverdell ESA Reporting Simplified
Ensure accurate Form 5498-ESA filing for education savings accounts. We handle the reporting so you can focus on helping families save for education.
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