UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: TMF2Putt Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75538  
Subject: Re: education investing with AGI over 150K Date: 10/30/2000 4:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
We have just had our first child and want to start a fund for his education. I'm finding most accounts have a income limit to qualify. We're concidering opening an account with a discount brokerage and starting a plan that way. Is this the best way to save for his education or are there better ways.

Hello,

You might take a look at the info on Education IRAs. Although you and your wife are probably above the income limits (no contributions if AGI is above $160K), it is permissable for you to gift the money to your child who may then open his own Education IRA. Max contribution is $500 per year. See the excerpts from the Education IRA info below ...

Any individual may contribute a maximum of $500 a year to an education IRA for the benefit of any person under age 18.

But you should note that, unlike other IRAs, a person can make a contribution to an education IRA even if that person has no compensation income for that tax year. This being the case, there is no reason that Grandpa can't give a $500 gift to little Johnny. Johnny can then turn around and open his OWN education IRA account for the full $500, since Johnny is well under the income limitations.

http://www.fool.com/money/allaboutiras/allaboutiras10.htm

I'm no expert, so there may be other options available to you as well. Fools, other options?

A couple of other boards that may be helpful are ..
Paying for College ..
http://boards.fool.com/Message.asp?id=1040017000629000&sort=postdate.

Family Fool ...
http://boards.fool.com/Messages.asp?bid=100147

Good luck with your investing,

Rachel Leahey
TMF2Putt
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement