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Education IRA: Definition & Characteristics

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What is the difference in an educational IRA and a Coverdell Educational Savings Account?

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1. Gloria is interested in saving money to send her son to a private boarding school for high school. Should she invest in a Coverdell or 529 plan?

2. Lou wants to save a lot of money to pay for his son's college and graduate school. He plans on putting away at least $5,000 per year. Should he invest in a Coverdell or 529 plan?

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About This Quiz & Worksheet

This quiz and worksheet combo help you find out what you remember about educational savings. Identify specific accounts available and the restrictions they face.

Quiz & Worksheet Goals

Use this set of questions to see what you know about:

  • Major differences between different educational savings plans
  • Restrictions on education savings
  • Coverdell age limits

Skills Practiced

  • Critical thinking - apply relevant concepts to examine information about different education savings plans and identify which would be better in a given situation
  • Distinguishing differences - compare and contrast topics from the lesson, such as Coverdell Education Savings Accounts and educational IRAs
  • Information recall - access the knowledge you've gained regarding who can and cannot invest in educational IRAs

Additional Learning

You can find out more about these different investment accounts by reviewing the lesson titled Education IRA: Definition & Characteristics. Make sure you understand topics like:

  • Payout restrictions of different accounts
  • Contribution amounts possible under different plans based on the child's age
  • Where you can set up these types of accounts
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