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GP asks:

<<What about an Educational IRA in the parents name?>>

That's fine because it's only the parent's earned income that counts. The drawback, though, is the contribution is limited to $500 per year from all sources for the child. For the one-year-old in this instance, contributions can be made for only 17 years. Compounding at 12%, that would be $27,375 towards the first year of school. At 7% inflation in college costs, that won't be enough to cover that first year. Still, it's a start.

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