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EDUCATION IRA
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WHAT IS AN EDUCATION IRA?
A nondeductible account that features tax-free withdrawals for a very specific purpose-a child's higher education expenses.

AM I ELIGIBLE TO CONTRIBUTE TO AN EDUCATION IRA?
There are two eligibility considerations.
  • The child for whom you are contributing may not have had any contributions made on their behalf to a state prepaid tuition program in that year.

  • Your modified adjusted gross income cannot exceed certain limits.


  • HOW MUCH CAN I CONTRIBUTE?
    The total aggregate contribution into one or more Education IRA's on behalf of a child is $500.00 per year.

    HOW DOES THE LAW DEFINE A CHILD?
    A person who is under the age of 18.

    WHAT IF I WANT TO SAVE FOR MORE THAN ONE CHILD?
    The law appears to allow contributors to deposit their maximum allowable contribution for as many children desired.

    DO I PAY TAXES ON THE EARNINGS?
    No, and neither does the child.

    HOW DO I OPEN AN EDUCATION IRA?
    Simply come in and see any or our IRA representatives, or call at 1-906-341-4600.

    You can also use the calculator to help you see what a college education may cost when your child is ready.

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