Message Font: Serif | Sans-Serif
No. of Recommendations: 0

We have a educational IRA set up for our only child and plan to continue funding it to the max, even with the increased allowance starting in 2002. My concern is if he should receive an academic scholarship, will I be forced to give the money to an extended family member or lose it? The question gets down to what exactly is included in "higher education expenses" that is not included in a typical academic scholarship.

I would like to know that expenses not covered by a scholarship are applicable for payment with educational IRA dollars such as room & board, commuting expenses, and so forth.

If we end up with an account of $20k that cannot be used for uncovered scholarship expenses, I will feel we have done a pretty poor job in planning and maybe could have been able to retire a year earlier.

Thank you in advance for your help,
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.