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I've noticed a contradiction between what's been posted on the board and what's in the Tax FAQ, so I'm bringing it to your attention, hoping that I can get a clarification.

In message 16590, TMF Taxes wrote:
(responding to a poster who described a number of relatives under 30 years old) But it appears that you could all begin an Ed IRA and then transfer it to your son's Ed IRA before you turn 30.
full message: <http://boards.fool.com/Message.asp?id=1040014005084001>

The idea caught on -- in message 16458 on this board, Bob78164 wrote:
Do you have any other near relatives who do not plan do use an Education IRA but are still under 30? Have their accounts funded, and transfer the money to your kid's account before the relative turns 30.
full message: <http://boards.fool.com/Message.asp?id=1040014005174001>

This sounded too good to be true! I'm 26, and have no kid yet to open an Education IRA for. This would be great. So I looked at the Tax FAQ.

Here's the problem: (emphasis mine)

In the October 30, 1998 Tax Q&A on the Education IRA, Roy Lewis wrote:
Any individual may contribute a maximum of $500 a year to an education IRA for the benefit of any person under age 18.
full article: <http://www.fool.com/School/Taxes/1998/taxes981030.htm>

Hmm, this doesn't sound good. So I checked out the IRS website.On one of the telefile pages, I found the following quote:
The designated beneficiary must be a child under the age of 18 when the account is established.
full article: <http://www.irs.ustreas.gov/prod/tax_edu/teletax/tc310.html>

Sorry guys. It looks like the Feds are on to us. You can only establish an education IRA for a beneficiary UNDER age 18. So the next generation may be able to exploit this loophole, but we can't.

-Megan
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