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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121316  
Subject: Re: Q on Education IRAs Date: 11/8/1999 10:11 PM
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<<I'd like to do the education IRA for my two sons (ages 3 yrs and 9 mos.). The Fool has an example where Grandpa
gives a child a $500 gift and then the child puts the money in the education IRA himself. This intrigues me. >>

Good...glad you found my tip intriguing.

<< Since neither of my children can write, they can't endorse a check. How careful do I have to be when pursuing this
avenue? >>

It's easy. You would be acting on behalf of the child anyway...as the custodin of the account. But it would certainly be a gift from Grandpa...or perhaps Grandpa could even open the account directly. It works virtually any way you slice it. If Grandpa gives the kids the funds, you would open a custodial account under the name of the kids, and then make the transfer to an Ed IRA account. Really pretty simple. But check with your bank or broker for the actual specifics of the transaction.

TMF Taxes
Roy
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