A Traditional IRA is a long term savings plan that enables you to build a retirement fund on which you pay no federal income taxes on the earnings until you start to make withdrawals. Every IRA contributor receives this benefit.

In addition, many wage-earners are eligible for a full federal tax deduction. Some wage-earners are eligible for a partial deduction; others, no deduction.

You are allowed to put $2,000 per child, per year, into a Coverdell Education Savings Account. That's $1,500 more per year than previous limits.

Additionally, qualified expenses apply to primary and secondary education as well as college. With the newest tax law change, you're even more likely to qualify for a Coverdell Education Savings Account.