Business and Personal Finance Dictionary

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• EDUCATION INDIVIDUAL RETIREMENT ARRANGEMENT
  
  This savings plan was created in 1998 so that parents could make nondeductible contributions to an account for a child under age 18. This program is not technically a retirement plan; rather, it is a trust or custodial account for the child, who is the designated beneficiary of the account. The child will be able to make tax-free withdrawals from the account to pay for qualified higher education expenses. There are income limits on who may open an Education IRA, and only $500 a year may be put in the account.
  
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