Education IRA

Education IRA
A type of individual retirement account enabling the contribution of up to $500 per year tax free for each child up to the age of 18 by the parents in the family. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Education IRA — A savings plan for higher education. Parents and guardians are allowed to make nondeductible contributions to an education IRA for a child under the age of 18. The education IRA is now refered to as the Coverdell ESA. The funds in an education… …   Investment dictionary

  • Education IRA — /ˌedjυ keɪʃ(ə)n ˌaɪrə/ noun US an account in which people can contribute up to $500 annually for the education of a child or a grandchild under the age of 18. These contributions are not tax deductible but can grow tax free. There is no tax on… …   Dictionary of banking and finance

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