Kid IRAŽ Comparison
To better compare the Kid IRAŽ and other investments, we have prepared this chart to showcase their similarities and differences.
Features | ![]() |
529(b) | 401(k) | IRA | Roth IRA |
Whole Life Ins. |
Savings Acct. |
Savings Bonds |
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Tax Benefits | ||||||||
Tax-advantaged deposit | ![]() |
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Tax-advantaged withdrawal | ![]() |
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Account-specific | ||||||||
Flexible Spending | ![]() |
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In child's name? | ![]() |
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Can be used as child's retirement account | ![]() |
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Investing | ||||||||
Can be used to invest in stock market? | ![]() |
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Can be used to invest in real estate? | ![]() |
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Can be used to invest in the child's business ventures? | ![]() |
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Other Educational | Kid IRAŽ | 529(b) | 401(k) | IRA | Roth IRA |
Whole Life Ins. |
Savings Acct. |
Savings Bonds |
Can be used to pay for day care expenses? | ![]() |
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Can be used to pay for other school expenses (supplies, books, materials, clothes, uniforms) |
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Can be used to pay for private school tuition (elementary,high school, etc.)? | ![]() |
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College Expenses | ||||||||
Designed to pay for college tuition fees? | ![]() |
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Can be used to pay for other college-related expenses (food, rent, utilities, books, travel? |
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Investment Values | ||||||||
$5000 per year @ 12% for 10 years* | $87,744 | $61,421 | $65,808 | $65,808 | $61,421 | $61,421 | $28,743 | $33,017 |
Kid IRAŽ Difference | $26,323 | $21,936 | $21,936 | $26,323 | $26,323 | $59,001 | $54,727 | |
![]() more info? |
* Assumes an annual compound interest rate of 12% with a current tax rate of 30% and a post-retirement tax rate of 25%