Parents who want to make a contribution to an education IRA for  2000 need to make the contribution by Dec. 31.

 While contributions to all other types of IRAs can be made up until the April 15 filing deadline each year, contributions to education IRAs must be made by the close of the tax year.

 Up to $500 a year can be contributed to these tax-sheltered accounts for children under age 18. Contributions aren't deductible but withdrawals can be made tax-free if used to pay college expenses.

 Lower- and middle-income parents should think twice before taking advantage of an education IRA to save for a child's college education if they expect their child will be eligible for financial aid in college.

 You could end up losing more in financial aid than you'll save in taxes from  the tax-sheltered account. That's because an education IRA must be set up in the child's name. In determining how much a family can afford to contribute to the cost of college, financial aid formulas count assets held in a child's name much more heavily than assets in the parent's name.

  "If you expect to qualify for financial aid, then I wouldn't use an  education IRA," said Thomas Beneventi, a Chicago area tax partner at the accounting firm of McGladrey & Pullen.

 On the other hand, he says, education IRAs can be attractive for  higher-income families who don't expect to be eligible for financial aid.

  The income-eligibility limits for education IRA's allow all but  the most affluent of families to contribute. The ability to make $500  contributions phases out for couples with adjusted gross incomes between  $150,000 and $160,000 on a joint return ($95,000 to $110,000 for unmarried  individuals.)

  Even families with incomes above those levels may be able to take  advantage of education IRA's for their children. That's because the law allows anyone to make contributions to an educational IRA so long as they meet the  income-eligibility requirements. "If the family had adjusted gross income over $160,000, you could have grandma give money to the kid's education IRA," said Thomas Ochsenschlager, a Vienna, Va. tax partner at the accounting firm of Grant Thornton.

Deadline for 2000 Contributions to Education IRAs