The Act increases contribution limits on education IRAs (also being called “education savings accounts”) to $2,000 annually.
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	•Individuals can make contributions until April 15 of the year following the taxable year (instead of Dec 31 under the old law).
	•Distributions from Education IRAs are free from tax if they are used to pay for qualified education expenses.
	•The Act increases the phase-out range for joint filers to $190,000 -- $220,000 or twice the range of single filers.
	•The Act expands the definition of “qualified education expenses” to include tuition, fees, books, supplies and equipment.  Room and board is also covered if at least a part-time student.
	•These expenses are broadened to also include costs for elementary and secondary school education.
	•The Act eliminates the prohibition on individuals claiming the HOPE or Lifetime Learning credits while simultaneously taking distributions from education IRAs.  Taxpayers, however, cannot claim a credit for the same educational expenses paid for through education IRA distributions.
	•Starting in 2002, contributions will be allowed from corporations, tax-exempt organizations and other entities.  A contribution made by an employer is taxable income to the employee.