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We have 3 children. They each have unearned income in various amounts. We don't qualify to open an Educational IRA for them. I have a grandmother who could but it confuses her, so I've left it alone. I called the IRS and asked if the kids could open their own account using only their unearned income. I also asked if I had to cash out that portion of the funds, or if they could use gift money to cover the allowed amount. I was told yes, they could open the account and they did not have to cash in any of their funds to pay it. Does anyone see a problem with this? Thank you for any opinions.
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