Brazos - Education IRA

Brazos Higher Education Service Corporation

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Income limitations to the Education IRA:

Single Filer

No contribution can be made if your Adjusted Gross Income (AGI) is greater than $110,000.
A reduced contribution may be made if your AGI is between $95,000 and $110,000.
$500 is the maximum contribution limit, per year, per beneficiary under the age of 18, if your AGI is less than $95,000.

Joint Filers

No contribution can be made if your AGI is greater than $160,000.
A reduced contribution may be made if your AGI is between $110,000 and $160,000.
$500 is the maximum contribution limit, per year, per beneficiary under the age of 18, if your AGI is less than 110,000.

After-tax contributions can be made by parents or grandparents on behalf of the beneficiary. However, it is important to note that a person can make a
contribution to an Education IRA even if that person has no income. The AGI limitations would still be in effect (see above).

Distributions from the Education IRA

Are tax-free if used for qualified education expenses, including room and board for the student.
There are tax implications if the funds are not used before the beneficiary reaches the age of 30.
Any remaining funds may be transferred to another child for his or her use.

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Education IRA