Investments with potential, implemented along with risk management strategies, can make an ideal addition to your retirement portfolio or as part of a Coverdell Education IRA
or other college funding vehicle.
Distribution of original contribution amounts from an Education IRA
can always be withdrawn tax-free.
Reddic currently has $3,000 in an Education IRA
that she opened more than a year ago.
So, each record tabulated on the Coverdell Education IRA
line may represent several owners (children), none of which is the actual taxpayer.
A taxpayer can establish an IRC section 530 ESA (formerly known as an Education IRA
must be under age 18 when the donor makes the contributions.
Starting in 2002, the contribution limit for an education IRA
will increase to $2,000.
Since you don't need any earned income to contribute to an Education IRA
, if you make too much, gift the dollars to your offspring and have the child make the contribution.
CONGRESS PROVIDED FAMILIES THE opportunity to save for college and to assist in paying their children's college tuition costs by introducing the Education IRA
Further complicating the statutory scheme, the Code precludes use of the Lifetime or Hope Credit if the child also receives tax benefits from an Education IRA
Instead, the Education IRA
can help you prepare for the future education of a child important to you.
The education IRA
bill was a prelude to an even uglier fight in the House, where Republicans have decided to impose a private school voucher program on the District of Columbia over the objections of elected representatives and the Washington board of education.
As a prod, they've now given us five IRAs: the traditional, deductible IRA; the non-deductible IRA; the rollover IRA; the Roth IRA; and the Education IRA