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Bob writes "Aside from the opportunity for additional savings that you point out, I can think of at least two additional benefits. First, earnings withdrawn from an Education IRA to pay for qualified educational expenses are excluded from income, while Roth earnings used for that purpose before age 59.5 are taxed at ordinary rates. Second, the Roth IRA is the only opportunity presently available to grow a tax-free stash of retirement money, so by using it to pay for college expenses you are paying a considerable opportunity cost."

Thanks Bob. Good points. I didn't realize that ROTH earnings taken out for educational expenses before age 59.5 would be taxed as income. Also, the opportunity cost thing is very important.

I will definitely open Education IRAs for my kids, as well as continue to contribute to my ROTH.

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