Education savings accounts (ESAs) are cool little tools that allow you to save and accrue income for your child’s education. ESAs are commonly established by parents for their children, but, contributors can include anyone from grandparents to the beneficiaries of the accounts. Annual contributions limit out at $2,000 per child and can be made until the child turns 18 years old. Although the IRS requires all distributions to be taken within 30 days after the beneficiary turns 30, this provides adequate time for most individuals to complete education requirements of their choosing.
Saving enough money for retirement is important. That statement is an absolute truth, yet somewhat mundane and largely underrated for many. Kind of like the words “I love you.” Anyone can say it and mean it. But, the proof lies in the actions that show love and, in turn, make those words meaningful and believable. Saying I love you is not enough. Showing someone you love them by continually cultivating the feelings behind the words, whether you’re dealing with your children, friends, or a spouse, is the foundation of successful relationships built on solid and lasting ground.
Self-directed IRAs are becoming more widely known and appreciated. In fact, some report that self-directed accounts are evolving into quite the trend among savvy investors. However, investors that use these accounts to build tax-free or tax-deferred income for retirement would probably tell you these accounts are not merely a trend—but a solid tool used to diversify their portfolios and gain control of their own investing funds and decisions.
There is plenty of good news for many retirement and other savings plan holders regarding 2015 contribution limits. While traditional and Roth IRAs contributions remain the same as 2014, other plans see an increase in limits—and every little bit counts!
Topics: Educational Savings Accounts (ESA), Health Savings Account (HSA), Roth IRAs, Self-Directed IRA, SEP IRA, SIMPLE IRA, Single Member LLC / Checkbook IRA, Contributions & Distributions, Traditional IRA