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Hello.

I'm 22 and don't have any kids (and probabyl won't for several years). Can I set up an education IRA right now with no beneficiary for my future kids' college education? I'd like to let compounding returns pay for much of it :)
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I'm 22 and don't have any kids (and probabyl won't for several years). Can I set up an education IRA right now with no beneficiary for my future kids' college education?

Sorry, but no. The Ed IRA must have a beneficiary. In addition, that beneficiary must have an SSN, and the SSA doesn't issue speculative SSN's.

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Phil Marti
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Sorry, but no. The Ed IRA must have a beneficiary. In addition, that beneficiary must have an SSN, and the SSA doesn't issue speculative SSN's.

It seems the way that Ed IRAs are desinged that one as young as he (22) could setup one for himself. I assume that you can contribute into a Ed IRA until age 30. For this to work out for him he would have to have his first child before age 30. At this time he can transfer the account to his childs SSN.

jasm
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It seems the way that Ed IRAs are desinged that one as young as he (22) could setup one for himself.

Nope. The beneficiary must be under 18.

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Phil Marti
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No, you can't set up an education IRA until you have a child to set it up for.

However, you certainly can start saving as much as possible now to take advantage of the wonder of compounding -- max your 401B contributions, contribute to an IRA if you can, and start an index fund and automatically contribute to it each month.
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<<It seems the way that Ed IRAs are desinged that one as young as he (22) could setup one for himself. I assume that you can contribute into a Ed IRA until age 30. For this to work out for him he would have to have his first child before age 30. At this time he can transfer the account to his childs SSN.>>

Right...it SEEMS like a great idea. But as Phil points out, in order to make a contribution to an Ed IRA, the beneficiary must be under age 18.

So while the beneficiary can "hold" the funds until age 30, no additional contributions can be made after age 18.

So in this specific situation, the plan wouldn't work since the person asking the question is already well over age 18.

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Roy
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MAKE YOURSELF BENEFICIARY OF A 529 PLAN as well as owner and change your beneficiary to your 1st child when you have their SS number. I;d recommend the program in Illinois!
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