529 Plan and College Savings

Question: Can a Roth IRA be used to fund my son’s college without penalty?

My wife & I have a very aggressive savings plan for our retirement and our son’s education. We use a 529 savings account for college savings and employer sponsored 401(k) type plans for our retirement.

I want to save more each month but want the flexibility to use my saving in the future for college OR retirement… in the future would I be able to make tax exempt/penalty free withdrawals from a Roth IRA to pay for my son’s college?? I would be between ages 44-52 while my kids are most likely in college.

Answer: YES.
I researched this in detail about a year ago.
That is the beauty of the ROTH account.
You can withdraw money for your child’s college without that 10% penalty.

http://www.bankrate.com/brm/news/529/20051024a1.asp

Note: I hate 529 plans.
Their fees are high, you are restricted to stay in state, if your kid goes to college on full scholarship – you lose out and pay fees. I honestly detest 529′s – roth’s are the way to go.

Note: google EFC calculator

http://www.finaid.org/calculators/finaidestimate.phtml

You will see how having your mortgage and cars paid off is the best way to get that kid of yours into college with lots of gvt free money.
Your goal – to have the least taxable money as possible.
Hide your money in 401K’s, IRA’s, ROTH’s, house, car…
I’m pretty positive you don’t carry credit card balances –
something just tells me that.
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