This is an outdated video but does a great job of explaining how an education IRA works. While the limits have gone higher, everything else discussed in this video is accurate. The current limit for the ESA account is $2,000 per year. The speaker discusses that after tax dollars are used to fund this account and that funds within the account compound tax free. Withdrawal is not taxable as long as the funds are used for qualified educational expenses and can start being taken between age 18 and 30. He covers some other basic rules and talks through who will be exempt from participating in this plan.
