Form 5305-EA (Rev. 10-2016)
Page 2
Article VI
The responsible individual may or may not change the beneficiary designated under this agreement to another member of
the designated beneficiary’s family described in section 529(e)(2) in accordance with the custodian’s procedures.
Article VII
1. The depositor agrees to provide the custodian with all information necessary to prepare any reports required by section 530(h).
2. The custodian agrees to submit to the Internal Revenue Service (IRS) and responsible individual the reports prescribed by the IRS.
Article VIII
Notwithstanding any other articles which may be added or incorporated, the provisions of Articles I through III will be controlling. Any
additional articles inconsistent with section 530 and the related regulations will be invalid.
Article IX
This agreement will be amended as necessary to comply with the provisions of the Code and the related regulations. Other amendments
may be made with the consent of the depositor and the custodian whose signatures appear below.
Article X
Article X may be used for any additional provisions. If no other provisions will be added, draw a line through this space. If provisions are
added, they must comply with applicable requirements of state law and the Internal Revenue Code.
Depositor’s signature
Date
Custodian’s signature Date
Witness’ signature Date
(Use only if signature of the depositor or the custodian is required to be witnessed.)
General Instructions
Section references are to the Internal Revenue
Code unless otherwise noted.
What's New
Military death gratuity. Families of soldiers who
receive military death benefits may contribute,
subject to certain limitations, up to 100 percent
of such benefits into an educational savings
account. Publication 970, Tax Benefits for
Education, explains the rules for rolling over the
military death gratuity and lists eligible family
members.
Purpose of Form
Form 5305-EA is a model custodial account
agreement that meets the requirements of
section 530(b)(1) and has been pre-approved by
the IRS. A Coverdell education savings account
(ESA) is established after the form is fully
executed by both the depositor and the
custodian. This account must be created in the
United States for the exclusive purpose of
paying the qualified elementary, secondary, and
higher education expenses of the designated
beneficiary.
If the model account is a trust account, see
Form 5305-E, Coverdell Education Savings
Trust Account.
Do not file Form 5305-EA with the IRS.
Instead, the depositor must keep the completed
form in its records.
Definitions
Custodian. The custodian must be a bank or
savings and loan association, as defined in
section 408(n), or any person who has the
approval of the IRS to act as custodian. Any
person who may serve as a custodian of a
traditional IRA may serve as the custodian of a
Coverdell ESA.
Depositor. The depositor is the person who
establishes the custodial account.
Designated beneficiary. The designated
beneficiary is the individual on whose behalf the
custodial account has been established.
Family member. Family members of the
designated beneficiary include his or her
spouse, child, grandchild, sibling, parent, niece
or nephew, son-in-law, daughter-in-law, father-
in-law, mother-in-law, brother-in-law, or sister-in-
law, and the spouse of any such individual. A first
cousin, but not his or her spouse, is also a
“family member.”
Responsible individual. The responsible
individual, generally, is a parent or guardian of
the designated beneficiary. However, under
certain circumstances, the responsible individual
may be the designated beneficiary.
Identification Numbers
The depositor’s and designated beneficiary’s
social security numbers will serve as their
identification numbers. If the depositor is a
nonresident alien and does not have an
identification number, write “Foreign” on the
return for which is filed to report the depositor's
information. The designated beneficiary’s social
security number is the identification number of
his or her Coverdell ESA. If the designated
beneficiary is a nonresident alien, the designated
beneficiary’s individual taxpayer identification
number is the identification number of his or her
Coverdell ESA. An employer identification
number (EIN) is required only for a Coverdell
ESA for which a return is filed to report unrelated
business income. An EIN is required for a
common fund created for Coverdell ESAs.
Specific Instructions
Note: The age limitation restricting contributions,
distributions, rollover contributions, and change
of beneficiary are waived for a designated
beneficiary with special needs.
Article X. Article X and any that follow may
incorporate additional provisions that are agreed
to by the depositor and custodian to complete
the agreement. They may include, for example,
provisions relating to: definitions, investment
powers, voting rights, exculpatory provisions,
amendment and termination, removal of the
custodian, custodian’s fees, state law
requirements, treatment of excess contributions,
and prohibited transactions with the depositor,
designated beneficiary, or responsible individual,
etc. Attach additional pages as necessary.
Optional provisions in Article V and Article VI.
Form 5305-EA may be reproduced in a manner
that provides only those optional provisions
offered by the custodian.
Form 5305-EA (Rev. 10-2016)
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