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Author: tomolly Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75797  
Subject: Education savings Date: 4/20/2000 10:24 PM
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I want to set up an IRA for funding my child's education. I may at some point use the "Education IRA", however, it doesn't seem like a place to really save for the future. Is it true that with the Roth education withdrawls are not "protected"? Are education withdrawls from Trad. IRA OK ? If one of these IRA's is the way to go for education funding, do I set the account up in my name or my childs? Since he has no income I don't think it can be a Roth. Anybody out there have some experience with setting up these kind of education savings accounts? Thanks Tom
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21422 of 75797
Subject: Re: Education savings Date: 4/21/2000 8:52 AM
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Greetings, Tom, and welcome. You wrote:

<<I want to set up an IRA for funding my child's education. I may at some point use the "Education IRA", however, it doesn't seem like a place to really save for the future. Is it true that with the Roth education withdrawls are not "protected"? Are education withdrawls from Trad. IRA OK ? If one of these IRA's is the way to go for education funding, do I set the account up in my name or my childs? Since he has no income I don't think it can be a Roth. Anybody out there have some experience with setting up these kind of education savings accounts? >>

For details on IRAs, see our IRA area at http://www.fool.com/money/allaboutiras/allaboutiras.htm and our Kiddy IRA discussion at http://boards.fool.com/Message.asp?id=1040013000935000&sort=id.

Regards..Pixy

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Author: auntpat Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21429 of 75797
Subject: Re: Education savings Date: 4/21/2000 6:17 PM
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I can't seem to copy and paste your message, but on the subject of setting up education accounts for kids, this is what I did for three grandchildren. It's called an Uniform Gift to Minors Act (UGMA), and with it's intended use for college, will belong to them at age 18 even if they choose not to go to college.

The accounts are set up in the childrens' names, and are handled by my discount broker who also handles my IRA. I am the custodian, but one of the children's parents could be the custodian. I have named the parents as successor custodians.

My son pays the income taxes on these accounts.

I can add up to $10,000./ year to each of these accounts. Only the custodian can add to the accounts.

Setting up an UGMA is much easier than than setting up a trust to fund a college education.

I hope this helps.

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