This calculator is intended to serve as an informational tool only, and should not be construed as legal, investment or tax advice. Please consult with a tax advisor or an investment professional about your unique circumstances.
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Annual rates of return can vary significantly and will depend upon your asset allocation and other variables. Historically, higher rates of return have been associated with higher degrees of risk.
According to The College Board, annual tuition, room and board, and fees will run you $14,133 for the 2008-2009 academic year at the average 4-year public college. For private 4-year colleges, these costs average $34,132.
A variety of financial aid is available to students and parents seeking to fund a childs education, many of which are not needs-based. In the 2007-2008 academic year, the average financial aid per full-time student was $10,392, of which $4,841 was in the form of federal loans, according to the College Board.
If the IRA holder turns 70 1/2 this year, he can defer his first distribution until April 1 of the next year. If he is older, he would normally be required to take his RMD before December 31 of this year. However, recent legislation allows account holders to skip their 2009 RMD. in any case, RMDs are considered taxable income for the year in which they are taken.