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 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.
State Savings Bank