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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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The benefit to and ed ira is that there will be no taxes when he does earn enough to make taes noticeable

Waterhouse does not charge fees for education iras from what I hear

dennis
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Waterhouse does not charge fees for education iras from what I hear

They don't. While I would have preferred to have the ED IRAs at Vanguard, it isn't a good deal.

Jacki
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