They provide relatives, such as grandparents, a way to give to minors while reducing their estate. You manage the assets. Disadvantages Because the assets will be in your child's name, they could significantly reduce your child's financial aid eligibility compared with assets held in your name. For this reason, these accounts should only be used by people who will receive a sizable tax advantage. In addition to most of the choices listed above, you can take two tax credits to help pay for higher education, if you earn less than the threshold.
Limits are half that for single taxpayers.
These credits can't be taken at the same time for the same student, and they can't be used in a year in which an Education IRA distribution is received. The information is not intended to be construed as investment advice nor is it an endorsement of any product, service, strategy, individual or organization. Always research your investments thoroughly and understand how they may affect your individual circumstances before committing your money. Please refer to the Terms and Conditions for additional information.