College Planning - IRA for College Expenses

IRA for College Expenses

IRAs As Education Savings Accounts

Traditional and Roth IRA accounts are additional options in saving for your child's education expenses.

Withdrawals can be taken from Traditional and Roth IRA accounts before the owner is age 59½, to cover qualified education expenses, without incurring a 10% penalty.

These expenses must be from a qualified institution for the benefit of the owner of the account, or on behalf of the owner's spouse, child, or grandchild. Withdrawal amounts per year may not exceed the qualified education expenses incurred in that year. Any additional amount withdrawn will be taxed as ordinary income and subject to a 10% penalty.

See IRS Publication 590 and/or your tax advisor for additional information about taking withdrawals to cover qualified education expenses.

* Earnings withdrawn for non-educational purposes will be taxed as ordinary income and subject to the 10% IRA penalty.

MTB Investment Advisors, Inc., a subsidiary of Manufacturers and Traders Trust Company ("M&T Bank"), is the investment advisor to the MTB Group of Funds.

The MTB Group of Funds are available from M&T Securities, Inc. (member FINRA/SIPC), a broker-dealer subsidiary of M&T Bank, and other authorized broker-dealers. ALPS Distributors, Inc., which is not affiliated with M&T Bank, is the distributor of the MTB Group of Funds.

For more complete information, please download the funds' prospectuses available on this website or call 1-800-836-2211 for copies. You should consider the funds' investment objectives, risks, charges and expenses carefully before you invest. Information about these and other important subjects are in the fund's prospectus, which you should read carefully before investing.