What can you tell me about obtaining an educational IRA?

Answer by  patti (29325)

Educational IRAs are set up by parents/guardians for kids under the ages of 18 through a financial advisor or investment first like Charles Schwab, American Express or Morgan Stanley. (There are many others.) The contributions are nondeductible; then, when the funds are used for educational purposes, they are withdrawn tax=free from the IRA.

Answer by  patti (29325)

A parent sets up an Education IRA (Coverdell ESA) for his/her child under the age of 18 and then make nondeductible contributions. When used, the funds are withdrawn tax-free.

Answer by  tamarawilhite (17883)

An educational IRA, also called a CESA or Coverdel Education Savings Account, can be set up at any bank or investment brokerage.

Answer by  JohnHolmes (2660)

Many banks offer this product to parents of students. Just like most IRA's many contributions are tax deductible since they will be taxed when they are taken out and used.

Answer by  Andrew25 (64)

An educational IRA is one of the best ways in which you can save for your child's education. The program is designed so that the tax savings alone make it worth the effort.

Answer by  tamarawilhite (17883)

An educational IRA or ESA can be set up by any family member on behalf of a child with an investment firm or bank. Funds are used for college expenses.