The National Directory of Certified Public Accountants

Ask A CPA - College Planning & Financial Aid

What Is An Educational Investment Retirement Account ?

Generally, taxpayers can now put up to $2,000 a year into one of these educational investment retirement accounts. Contributions to such an account are not tax-deductible, but earnings in the account will accumulate tax free. No tax liability will be incurred on withdrawals if the money is used to pay college education expenses. For the current year, the full $2,000 contribution is available for joint filers whose Modified Adjusted Gross Income is less than $220,000 and single filers with Modified Adjusted Gross Income less than $110,000.

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