Just over 3 months until April 15th

You also have until then to decide on a Roth or traditional IRA. These were discussed in the Money Matters feature of the winter issue of Kallah Magazine, which you could read by clicking on the link to the Winter10 PDF at kallahmagazine.com
There is a third type of IRA that I didn't include in the post because it is aimed at couples who would not yet have children. If you do have a child under 18, you can set up an Education IRA AKA Coverdell Education Savings Account - ESA accounts for them. Those are limited to $2000 a year per child and are not tax deductible. But the earnings can grow tax free if the money is only taken out for qualifying expenses. These types of plans are very flexible. The money could possibly be tapped even for high school yeshiva tuition. It may depend on the school. The money is also allowed to be used for education related expenses such as computers and books.


Anonymous said…
You are correct that Coverdell Education Savings Accounts (known as ESAs or Education IRAs) can be used for private school tutition (K-12) as well as college costs but this rule is set to expire the end of 2010. So unless Congress acts which many thing they will but it isn't certain that they will. then the ESA will be similiar to a 529 account in that it will only be able to used for College Expenses.

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