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<<Anyway, can you explain a little more what you meant from your response to, << Also, the kids are not eligible for the Hope or Lifetime Learning Scholarships.> and your reply was, <<Just not for the same year. If planned correctly, they could get the benefit of all of them.>> Could you explain that for me?>>

Sure...but first you need to go to the Taxes FAQ area and read ALL of the posts regarding the Ed IRA, the HOPE, the Lifetime credit, and how they all interact. There is a LOT of reading that you (and, more especially, your brother) should do.

But, say the blow through their Ed IRA in the first year of school. Then in the 2-4 years, the Lifetime and Hope credits may be available. These credits are not available ONLY in the years that tax free benefits from the Ed IRA have been taken. But there is nothing that requires WHEN you take the Ed IRA benefits. Could be the first year...or the last year...or some year in between. YOU make that decision.

<< Also, my brother feels (as do I) that he definitely does not want his kids or him to use financial aid to finance college, if at all possible. However, if he is not able to meet their college expenses. He might have to.>>

Certainly understandable...

<< You said, <<Again, without knowing much more about your brothers issues, it's just impossible to say one way or the other. If the only choices that you're giving me is a Roth OR Ed IRA...with no other information, then I would elect the Roth IRA. But nothing is done in a vaccum.>> If I may ask, what else do you need to know about him to give a little more specific response?>>

About an hour or so sitting in front of me, reviewing his tax returns and his estate planning issues, other children. Potential income and loan sources. It just can't be done in a "message folder" forum...at least not in any specific detail.

<< I know he told me he did not think he could do the Roth and the EDU IRAs at the same time.>>

When you say "do"...do you mean contribute? That's just not true. If you qualify to do so, you CAN make a Roth IRA AND an Ed IRA contribution in the same year. Again, read more about that in my post on Roth IRAs and Ed IRAs in the Taxes FAQ area.

<< I am willing to provide the information necessary for you to get more specific. Again, thanks for your time and help. It is very much appreciated. I hope to hear a reply back.>>

No way possible...at least not to my satisfaction. I can't plan your finances via a message folder. All I can do is give you issues to think about, and point you in the right direction regarding additional resources and reading. I'm not trying to be difficult, but what your asking for (the "best" result) is simply impossible to provide in this forum.

TMF Taxes
Roy

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