Individuals (subject to income limitations**) and entities are eligible to contribute. $2,000 per taxable year is the total aggregate contribution that may be made on behalf of a child under the age of 18.
The IRS assesses a penalty for excess contributions.
There may be penalties for early withdrawal (both IRS and Bank).
*Qualified Education Expenses. The money must be used for the beneficiary's qualified education expense (such as tuition, fees, books, supplies, equipment, etc.) at an eligible education institution; distributions are made during the year in which the education expense occurred; and the beneficiary is between the ages of 18 and 30. Please contact your local Katahdin Trust branch for a complete list of qualified education expenses.
**Income Limitations. Single persons with modified adjusted gross income below $95,000 and married couples filing jointly with modified adjusted gross income less than $190,000 may make full contributions. A phase out contribution is allowed for singles with incomes between $95,000 and $110,000 and married couples with incomes from $190,000 to $220,000. There are no income limitations for entities.
Please refer to our Fees for General Services brochure for additional fees that may apply.