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<< I understand the limits on contributions to an education IRA once AGI is > $160,000. However, since anyone can contribute to an educational IRA, couldn't a person with more than $160,000 in AGI "give" the $500 annually to a family member with a lower AGI who in turn can contribute the $500 annually to the child's educational IRA? >>

Get rid of the quotation marks and give the money to the recipient, who can do anything he wants, including making an allowed Ed IRA contribution. Yes, it's a loophole and yes, it might get plugged some day, but the whole Ed IRA business is a mess, IMFFHO, so why should this be any different.

Phil Marti
Tax Preparer
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