by: C.C. Collins
An Ira is one of the greatest ways to save on taxes currently and accumulate money for the future.
For individuals three types of IRA's will normally come under consideration.
* The Traditional or Regular IRA
* The Education IRA
* The Roth IRA
Education IRA is now called the Coverdell Education Savings Account (ESA).
Education IRAs allow you to save for qualified higher educational expenses for a beneficiary. Parents and guardians are allowed to make nondeductible contributions to an education IRA for a child under the age of 18.
Contributions are allowed prior to the beneficiary turning 18, and contributions may not exceed $2,000 per beneficiary per year.
Contributions are made with after-tax dollars. There is NO deduction for the contribution. Withdrawals, however, are tax- and penalty-free when adhering to certain rules.
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