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The Education Individual Retirement account is available to anyone with an adjusted gross income of less than $110,000 which is subject to phase-out rules. For married couples the adjusted gross income of less than $160,000 subject to phase out rules. The maximum allowable contribution for any child under the age of 18 is $500.This contribution is subject to phase-out rules based on the adjusted gross income of the individual(s). 

The Education IRA allows for tax-free withdrawals for as long as the withdrawal is being used for higher education expenses. The funds in the Education IRA must be used up entirely by the time the student reaches the age of 30. If the funds are not used up they may be transferred to another to another family member on a tax-free basis.