Beginner's Guide to Roth and Traditional IRA's as College Savings Accounts

Eligibility:

Withdrawals that avoid the 10% early withdrawal penalty must be for the education of the account owner, their spouse, children, or grandchildren.

Contribution Rules:

There are complex contribution rules for IRA’s which are affected by the type of IRA, a contributor’s age and income, and whether or not the contributor or their spouse is offered a retirement plan by their employer.

The maximum contribution to an IRA is $5,000 per person, with an additional $1,000 for account owners over age 50.

Contribution Deadline:

The contribution deadline for an IRA is a taxpayer’s filing deadline, which is generally April 15th plus extensions.