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You may be able to contribute up to $2000 each year to an education individual retirement account (education IRA or Coverdell Education Savings Accounts) for a child under age 18.  Contributions to an education IRA are not deductible.

Any individual (including the child) can contribute to a child's education IRA if the individual's modified adjusted gross income (AGI) is not more than $110,000 ($160,000 on a joint return).  The $2000 maximum contribution for each child is gradually reduced if the individual's modified adjusted gross income is between $95,000 and $110,000 (between $150,000 and $160,000 on a joint return). 

There is no limit on the number of education IRAs that can be established designating the same child as the beneficiary.  However, total contributions for the child during any tax year cannot be more than $2000.

Amounts deposited in the accounts grow tax free until distributed (withdrawn).

If, for a year, withdrawals from an account are not more than a child's qualified higher education expenses at an eligible educational institution, the child will not owe tax on the withdrawals.

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