The only thing they'll have to worry about is the big test. With an Educational IRA, you can make after-tax contributions of up to $2,000 per beneficiary, per year in addition to the maximum Traditional or Roth IRA contribution. And if you use the accumulated earnings to pay higher education tuition or other education costs, withdrawals can be tax-free.
- The beneficiary must be under age of 18 to receive contributions and must make all withdrawals by age 30*
- Interest Bearing
- FDIC Insured (within guidelines)
- Funds may be used to pay for private schooling between grades 1-12, or for higher education
- Flexible terms from 3 months to 60 months
*Consult your tax advisor for more information.