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TMFTaxes said:
>I would love to have heard the NBC report to see what they were really driving at. But there are no provisions that I can find that would exempt the earnings from tax.<

I can't help you there but I can come close. Here is a quote from the on-line version of the NBC story:
>      You can take money out of a Roth to educate your children without paying tax on it. That's not the case with a regular IRA. You can also take out up to $10,000 to buy a first home without paying any taxes. Again, with a regular IRA, you do pay taxes. <

For the whole story, see http://www.msnbc.com/news/151425.asp

If he meant you can take your contribution out without paying tax, that is misleading because you have paid tax on it. And I think most people (like me) who heard the story interpreted it to mean that whatever you take out of a Roth to educate your kids is tax free.

Thanks for setting us straight Roy.

dennis
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