August 29, 2008
IRA Rules For Traditional And Education IRA
One can contribute up to $2000 per year into an IRA. But according to ira rules, the amount that qualifies for tax exemption will depend on various factors like Adjusted Gross Income (AGI), filing status (Single, Joint, etc.), coverage under employer sponsored qualified retirement plan and so on. Thus one’s contributions may range from fully deductible to completely non-deductible.
Education IRA
Up to $500 per year can be contributed to Education IRA for educational purposes and upon distribution to the beneficiary, it attracts preferential tax treatment. However these plans are not very common as the IRA rules that govern them are restrictive in nature.