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Home > Savings Rates & Info > IRAs > Education IRA
What is an Education IRA?
The education IRA allows parents and grandparents up to $500 per year per child (up to age 18) to be saved to pay for college expenses. Money invested in an Education IRA does not count toward the maximum invested in other IRAs. Although money invested in an Education IRA is post-tax money, the interest earned is tax exempt. Money withdrawen can be used for tuition, room and board, books and school supplies.
All funds must be distributed by age 30 or rolled over to a new Education IRA for the benefit of another qualified family member.
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