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Are there restrictions regarding a qualified state tuition program and Education IRAs?

April 26, 2017Education IRAs program qualified State tuition

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Are there restrictions regarding a qualified state tuition program and Education IRAs?

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Individuals can contribute to both 529 plans and Education IRAs. The Economic Growth and Tax Relief Reconciliation Act of 2001 allows contributions to the Coverdell Savings Account ( formerly called an Education IRA) to cover K-12 education expenses on a tax favored basis. Individuals may benefit by funding a 529 plan for the child’s college and utilizing the Education IRA for elementary and secondary education.