Education Savings IRA
Concerned about rising education expenses for a young person in your life?
Want your contributions to remain untaxed?1
Need an option that does not impact your ability to contribute to your own IRA?
If you would like to help secure the future learning of a minor in your life, a Desert Schools Education Savings IRA may be ideal for you. Funds may be applied to tuition, fees, books, supplies, room, board and equipment required for enrollment or attendance at an eligible educational institution, as well as tutoring and special needs services. If the institution requires uniforms, transportation and extended care, these may also be covered. An institution is defined as elementary, secondary or post-secondary and includes private, public and parochial schools.
For 2009, you may contribute up to $2,000 annually per beneficiary.2
- No monthly or annual fees
- No minimum deposit
- No minimum balance
- No withdrawal penalty from Desert Schools3
- Free Online Banking, eStatements and PAL
Members with an Education Savings IRA may consider setting up an automatic transfer.
Consult your tax adviser regarding your individual tax situation.
1Distributions and earnings remain tax-free, if used for qualified educational expenses. The contributor is not entitled to a tax deduction.
2Contributions may be made the year the beneficiary turns 18, if prior to their birthday. Distribution must be taken or designated to a new qualified beneficiary at age 30. One exception exists: contributions may continue and distributions are not required at age 30, if the beneficiary has special needs.
3The Internal Revenue Service will assess a penalty for withdrawals that are not made for qualified educational expenses.