You have not screwed up the logic. The Roth IRA can be a good way to fund education.And you don't have to pay tax on the contributions to the IRA, just on the earnings.A good plan is for both you and your spouse to contribute $2000 per year to a Roth IRA. Potentially this can add up to $72,000 in contributions if done from birth of the child. Take the contributions out tax free at college time and leave the earnings in the Roth IRA for retirement.
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