tomatogrwr writes:

Does one have to fund an educational ira before the end of the year? If both parents earn income is it just $500/child for both parents or $1,ooo/child for both parents?

Can the ed ira be done in addition to the Roth IRA?

When you set up an ira is it best to have the Fed,and State taxes taken out by Waterhouse,or do it yourself?

I reply:

The Education IRA, unlike the traditional or Roth IRA, must be funded before December 31. The $500 limit is measured on a per child basis, not a per contributor basis; in other words, each child may receive contributions of only $500 per year from all sources combined. One may contribute money to an Education IRA as well as to a Roth IRA, provided the eligibility limits for each type of account are satisfied.

I don't understand the final question. Taxes are not taken out when the account is set up. The whole point of using an IRA is to achieve growth without paying interim taxes. If I've misunderstood your last question (and no one else answers it), please post again. --Bob