• Non-guaranteed interest rate years 2-8 is 4.75% APY
• Must be designated as an Education IRA when opened in order to be treated as an Education IRA for tax purposes.
• May be established for the benefit of anyone under the age of 18.
• Up to $2,000 per year in aggregate contributions may be made for the benefit of the designated beneficiary.
• Contributors may not take a deduction for contributions made to an Education IRA.
• A child may contribute to his/her own Education IRA.
• Taxpayer does not have to be related to the designated beneficiary in order to contribute to the designated beneficiary’s Education IRA.
• There is no limit to the number of Education IRA accounts that may be established designating a particular child as beneficiary.
• Initial deposits of $500 or more.

Withdrawal Privileges 

• Withdrawals made by beneficiary to pay for qualified education expenses are tax-free.
• Any amount distributed from an Education IRA and rolled over to another Education IRA for the benefit of the same designated beneficiary or certain members of the designated beneficiary’s family is not taxable.

The FCSU does not provide legal or tax advice. Please consult with your legal or tax professional to determine the best investment product for you.