IRS Describes New Education Tax Benefits Including Education IRAs

Washington, DC, March 27, 1998 - The Internal Revenue Service recently published Publication 970, entitled "Tax Benefits for Higher Education." The publication discusses the new tax benefits made available in the Taxpayer Relief Act of 1997. These benefits include the new Education IRA, the ability to make penalty-free withdrawals from traditional IRAs for higher education expenses, new education tax credit programs, a deduction for student loan interest, and new federal tax rules regarding qualified state tuition programs.