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The funds in an education IRA can be withdrawn tax free when they are needed for educational purposes. The education IRA is now the Coverdell ESA.
Investing In Your Child's Education - Overwhelmed by increasing tuition costs? The U.S. government can help you save money for your children's education.