Although called an IRA, the Education IRA has nothing at all to do with retirement. Rather, the Education IRA helps you build tax-free earning to pay for higher education. Earnings grow tax-deferred.
Withdrawals are tax-free if used for qualified education expenses.
No contributions for beneficiaries 18 or older. Withdrawals required by beneficiary's 30th birthday or taxes and penalties may apply. Funds can be transferred to an Education IRA of a family member. Once Education IRA beneficiaries reach legal age, they may control the account. Please consult your tax advisor for complete details about the recent tax legislation and advice regarding your individual situation.