Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I'm thinking of starting a 529 for my infact son ... Want to support this with an education IRA

I'm sure someone will chime in here with more details, but I'm pretty sure you cannot contribute to a 529 and E-IRA in the same year. If you can, then I don't see any reason that your plan would not be a good idea for your situation.

I've looked into the 529 plan for my state and those that are recommended as the "best." I haven't found them attractive due to all the constraints and potential penalties.

I have decided to save in a Roth-IRA for my kids. I don't recommend this as the "right" or "only" way, I've decided it is the best for me.

If you cannot contribute to a E-IRA while funding the 529, your other options include (order does not indicate rank):
- Trust
- UTMA/UGMA - irrevocable gift of money, stocks, or real estate that becomes the childs at a specified age (18-21 in most states)
- save in your own 401K or Roth
- save in your own name

Hope this helps. Your son is very blessed to have such a prepared Dad. Good work.

Print the post  


Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
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.
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.