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Financial Planning / Paying For College


Subject:  Re: 529 vs. Education IRA Date:  1/24/2002  2:16 PM
Author:  brifrancis Number:  4727 of 8558

Thank you for this well thought out post. You've caused me to take a closer look at an EIRA, as I was thoroughly convinced 529 was the way to go.

Having looked at the EIRA again, I believe the 529 holds one major advantage. Unless I'm mistaken, the beneficiary controls the proceeds in an EIRA where the contributor controls the money in a 529 plan. Now I'm sure my 3 week old angel will never do anything to upset her father. But if 18 years from now she does decide to skip college and hitchike around the country, I'd rather have control of the college fund than allow her to withdrawl all her EIRA money, pay uncle Sam the penalties, and live the high life on her father's hard earned, hard saved money.

I'm willing to "pay" with lower returns for that power.
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