You have the greatest tax advantages with investments you buy for a tax-free retirement or education savings account. You owe no tax on the current income from investments in the account. You owe no capital gains tax if you realize a profit when you trade investments in the account. And you owe no tax on any accumulated investment earnings when you withdraw from the account. With ESAs, however, the money must be used for qualified expenses to be tax free.
Gail Dudack,
Managing Director,
Dudack Research Group
Gail Dudack, 