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Hi--

I have a 4 1/2 year old who has two college accounts. One is a Vanguard UGMA/UTMA in VFINX set up by my parents and the other is a Vanguard Education IRA in VTSMX set up by me.

I'm looking somewhat askance at the E-IRA.

First, I pay a "custodial" fee of $10/year because it is an IRA.

Second, I pay a low balance fee of $2.50/qtr because it has less than $10,000.

Both fees are pretty danged impossible to avoid, and on the $1K that's in there so far, they're quite noticeable.

I was thinking about maybe rolling the E-IRA $ into the UGMA/UTMA.

First question: Is there any benefit to keeping the Ed-IRA? He avoids taxes on the earnings and can take it out tax free for college with the E-IRA. But the same is currently true for the UGMA/UTMA account because he doesn't earn very much there.

Second question: Can I withdraw the E-IRA funds for anything other than college? Would using it for private school tuition work?

--malakito.
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