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Education IRA contribution deadline.


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Guest denisedawson
Posted

Education IRA contribution deadline. Ref. books in the area states that the deadline follows IRA regs and pub. 590 stating "post marked by" vs invested at the firm by, in this case December 31st. Which is true?

  • 3 weeks later...
Posted

The deadline for establishing the education IRA is December 31 for the year for which it is established- the deadline for funding the education IRS is also December 31 - of the year for which the IRA being funded. while the IRS has not stated explicitly the deadline for establising an education IRA, the fact that the IRS Form 5498 for Education IRA contirbutions must be issued to the IRA owner by Janaury 31 supports the December 31 deadline. - This is unlike participant contributions to Roth and Traditional IRAs, for which the 5498 must be issued by May 31.

In summary, the last day to fund an education IRA for 2000 WAS December 31, 2000.

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

Posted

What I do not understand is why anyone would want to contribute to an Ed IRA. You would lose Hope credit if used, contributions to other types of accounts (529,Roth) are much more advantageous.

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