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
Access the client’s account online to add account options like automatic investment, exchange or rebalance plans. Use the Coverdell ESA Account Options form when adding other options, such as distributions via Automated Clearing House.
Log in to Client Accounts.
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For answers to common questions, visit Opening Coverdell ESAs.
Transfers and rollovers
Open a Coverdell ESA with funds from another Coverdell ESA
Use this form, along with the application, to open a Coverdell ESA with a transfer of assets. 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 a gift of shares
Use this form, along with an application, to transfer existing American Funds shares to open a Coverdell ESA.
Complete the Gift of Shares Request.For answers to common questions, visit Coverdell ESA transfers and rollovers.
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Update
Update authorized person’s personal information
Update authorized person’s name
Use this form and submit it with supporting documentation. Refer to 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 wait 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 account updates they may need to consider.
Add/update authorized person’s bank accounts
Link a bank account for contributions
Add/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 for distributions
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 answers to common questions, visit 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 answers to common questions, visit Managing Coverdell ESAs.
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Transact
Contributions
Make a one-time contribution online
Access the client’s account online and select 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) and should 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 and select Automatic Transactions to add or update an automatic investment plan.
Log in to Client Accounts.
Gift 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 answers to common questions, visit Coverdell ESA contributions.
Distributions
Distribute funds to the authorized person
Funds can be sent via check or Automated Clearing House (ACH) if the authorized person’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 select Sell.
Log in to Client Accounts.
Distribute funds to the recipient
Funds can be sent via check or ACH if the recipient’s bank account is already linked and the distribution is for $125,000 or less. The distribution will be reported under the recipient’s SSN. Access the client’s account online and select 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’ll need the institution’s name and billing address and the recipient’s student ID number. The distribution will be reported under the recipient’s SSN.
Set up automatic distributions
Funds can be sent automatically by setting up an automatic plan and can be sent via ACH or check.
Complete the Coverdell ESA Distribution Request.
For answers to common questions, 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 accessing the client’s account online 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 online. Access the client’s account online and select Automatic Transactions.
Log in to Client Accounts.For answers to common questions, visit Coverdell ESA exchanges and rebalances.
Transfers and rollovers
Move an external Coverdell ESA to a CB&T Coverdell ESA
Use this form to request a transfer from 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.Move assets from a CB&T Coverdell ESA into a Capital Group CollegeAmerica® account
Use 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.
Move assets into an existing CB&T Coverdell ESA as a rollover
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 1 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 answers to common questions, visit Coverdell ESA transfers and rollovers.
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