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Excess amount in Education IRA


Guest chandra patel

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Guest chandra patel
Posted

Does any one have any suggestion to transfer education IRA into any special

account other than UGMA? I have excess the education IRA limit. I already invested $500 in education IRA. I need

to remove excess amount from mutual fund.

Guest Del Rae
Posted

Chandra,

When you indicated that you are over the 'education IRA limit", were you referring to the MAGI limitation or the $500 per child per year? Parents that are over the MAGI can often consider gifting the $500 to grandparents, aunts, uncles or even the child that may be under the MAGI, who would then contribute towards the child's Education IRA.

Other considerations for savings for education might be growth stocks with low dividends if the child is under 14 years of age, or Series EE savings bonds of which the earnings can be tax-free if used for education when they expire (There's a form that you complete with your tax return in the year that you claim the Series EE bond education exemption). No doubt there are a number of financial planners out there that have additional suggestions.

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