529s and Education IRAs

I was reading the highlights of both yesterday to figure out what to do with the college funds.  The advantages I’ve found for the 529s is that we can contribute a LOT more money to them, and they are more flexible as to where we can invest.  I think this is the appropriate place to save for college.

We’ll probably use the Education IRA ($2k per year contribution limit) to pay for K-12 schooling.  The choices are far fewer, but the ability to use the funds for K-12 is attractive.
Also of note, these accounts grow tax free, but the contributions to them are included in the $12k/$24k gift allowance to an individual.

Sometimes I’m glad we’re not rich so that we don’t have to worry about those things applying to us. 

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