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    iandthou2's Avatar
    iandthou2 Posts: 5, Reputation: 1
    New Member
     
    #1

    Jul 10, 2006, 07:08 PM
    Pretax accounts for newborns (in advance?)
    Hi,

    My wife and I are expecting a child in a few months.

    We would like to purchase the necessary equipment -- car seats, strollers etc -- with pre-tax dollars.

    1) Am I allowed to use my own pretax account (set up in my name) for these expenses?

    AND/OR

    2) Is it possible to set up an account for the baby before it is born?

    We want to buy the equipment BEFORE the birth, of course... but we also want to use pre-tax dollars. If neither (1) or (2) above will work are there other options?

    Many thanks!

    IND
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert
     
    #2

    Jul 11, 2006, 08:24 PM
    I know of NO pre-tax account that can be used to buy the child's equipment.

    You can set up a college fund (called 529 accounts; there are plenty of websites that explain them), but you must wait until the child is born.

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