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Subject:  Re: Education IRA Date:  4/18/2000  6:37 PM
Author:  TMFExRO Number:  34717 of 127549

<< All is clear except when you say: "It's legal to ask anyone to contribute to your son's Ed IRA." Does this "anyone" include a Aunt, Uncle, or a friend? Does this "anyone" has to have earned income? In Pub590 there are no rules as to whom this "anyone" should be at all except the AGI limit. >>

Correct. Now what was the name of "The Millionaire"? (Yes, I know I'm dating myself.)

<< May I set up a costodian account for my son and put in certain amount for him each year (below $10000 to avoid gift tax) as a gift, then withdraw $500 from this account to contribute to his Edu-IRA? >>

Sounds like a plan to me. Also sounds like you were listening well. (I hasten to add that I'm not an expert in custodial accounts, but from what I know about them this would be fine. It's fine from a tax standpoint, but double check the property law end of it before you set it up.)

Phil Marti
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