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IF asks:

<<Some families do not discuss financial matters. If multiple EIRAs are opened up for a child, who is penalized? Is it based on date EIRA is started? What is the penalty?>>

It's treated like any other excess contribution to an IRA. The penalty is 6% per year until the money is withdrawn, and it's assessed against the owner (i.e., whoever established it for the child). A 1998 EIRA receives the penalty if the excess contribution is not withdrawn prior to 4/15/99. As to who has to withdraw, I dunno. My presumption is the IRS will say the one started earliest is the allowable contribution, and any others have to be withdrawn.


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