Educational IRA's

• Up to $500 per year can be given to any child for their education IRA
• Anybody can give this money to the child, but it has to be in cash.  There are some restrictions for people who make over 110K per year or over 160K if married
• People who contribute do not have to be related to you or your child in any way.
• Child must be under 18, and children can put money in their own IRA which is a great way to save money for the future.
• The IRA is not tax deductible for the contributor, but is tax free when the student withdraws the funds for qualified college expenses.

We think this is a great way to help save money for school since you can save after tax money, invest over the lifetime of the child, and then pay no capital gains or income taxes when you need to use the money.  This can make a big difference for families that have high marginal tax rates, where now they can use the child's IRA instead of after tax money to pay for school. 

We think that as a savings plan, you should take advantage of this IRA from the government and get others to help contribute $500 per year if you can't to get the maximum benefit.  It's a great way to save for college and save money on taxes.

You can open and educational IRA with many financial institutions such as Brokers, Banks, etc.  If you have a child under 18, this is a tax savings opportunity you should not pass up.