The TIAA-CREF IRA now offers nine mutual funds along with its existing 10 annuity options. Coverdell Education Savings Accounts (formerly Education IRAs) let clients put aside money for a child or grandchild to help them meet education costs. The contributions come from after-tax money, and withdrawals are free of federal taxes if the money is used for qualified education expenses. Benefits not used for the child or grandchild originally named in the contract can be transferred to other children or grandchildren. However, withdrawals not used for higher education are subject to penalty and taxation.

Clients should consider all alternatives carefully before investing because they cannot use the same educational expense to claim a tax-free Coverdell withdrawal and to claim the Hope Scholarship or Lifetime Learning Credits.

Solutions for Usage
Your client can choose among any of our 10 no-load mutual funds for a Coverdell Education Savings Account, with a particular eye toward how long he or she expects to keep the money invested. If assets will remain in the account for 10 years or more, your client can take a fairly aggressive investment position. As time for paying tuition nears and fluctuations in the account value become less tolerable, your client may want to rebalance the assets and reallocate contributions toward a more conservative strategy.

Keep in mind that Coverdell Education Savings Accounts aren't like IRAs. As tax-advantaged college savings plans, they can't be used for retirement investing and don't affect eligibility or contribution limits for actual IRAs and/or tax-deferred annuity plans.

Available:

•	Single Filers -- $95,000-$110,000 AGI
•	Joint Filers -- $190,000-$220,000 AGI

Contributions are limited to $2,000 a year maximum per student.

Withdrawals - Income not used for the named beneficiary's education costs loses its tax exemption, and earnings are subject to a 10 percent penalty.

Forms and Applications
You can download an application online.