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<<Here's something new to talk about. The new Educational IRA, who is able to contribute? Is the limit $500/yr per child or $500/yr per contibutor? That is to say, can we (the parents) contribute $500 and the grandparents also contribute another $500 and...?>>

Yo!! Vince!!

Lets take a look....

Based upon my interpretation of the law, the annual $500 contribution limitation is per beneficiary (or child). So if YOU give little Sally a $500 education IRA, that is all that Sally can receive for that year. The limitations are per beneficiary...not per donor. And, don't forget the income limitations to see if you even qualify to make the contribution.

<< $500/yr, even for 18 years isn't going to pay for much. Granted is something and it's tax exempt and it can be transferred to another family member. >>

Right. Something is something. And there ARE a few nice features (such as the transferability to another family member...as you point out). But I don't see too much excitement from my clients over this program quite yet. It may go the way of the "tax free savings bond" program for the payment of higher education (which after a bunch of initial buzzing went nowhere).

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Roy
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