Re: Saving for your kids’ college?
Written by jlz on December 27, 2005 – 9:42 am -A friend responded to my college saving question. His suggestions is I-Bonds.
It seems like a pretty good vehicle and it’s appprently now paying 6.75%. It allows you to have tax deferred investment. With the Education Bond Program, you can even spend the money on educational related expenses, either for yourself or your kids, without paying any penalties or taxes.
However, the problem is that it has a fairly low income limit:
Posted in Education, anZel |Tax Year 2005 Income Limits:
For single taxpayers, the tax exclusion begins to be reduced with a $61,200 modified adjusted gross income and is eliminated for adjusted gross incomes of $76,200 and above. For married taxpayers filing jointly, the tax exclusion begins to be reduced with an $91,850 modified adjusted gross income and is eliminated for adjusted gross incomes of $121,850 and above. Married couples must file jointly to be eligible for the exclusion.Tax Year 2006 Income Limits:
For single taxpayers, the tax exclusion begins to be reduced with a $63,100 modified adjusted gross income and is eliminated for adjusted gross incomes of $78,100 and above. For married taxpayers filing jointly, the tax exclusion begins to be reduced with an $94,700 modified adjusted gross income and is eliminated for adjusted gross incomes of $124,700 and above. Married couples must file jointly to be eligible for the exclusion.