Skip to main content
No. of Recommendations: 0
Dear FoolishGriggs - Regarding Roth/IRA & using it for college savings... I like it! Because you save with after-tax monies, all gains will be tax-free if taken after age 59 1/2. Sure, but what about college funding? Well, if your Roth account is over 5 years old you'll be allowed to withdraw the contributions without penalty (or tax) for any reason. The gains may also be taken out for educational expenses for the account owner, spouse, child, or grandchild without the usual 10% penalty, however you may be subject to taxation... A great idea, this Roth, because it isn't an asset in the student's name (it's your retirement account), and your use of its funds may not prevent you from using the HOPE Scholarship, or Lifetime Learning Tax Credit! And if you don't need to draw from it, you'll have it for your retirement... Best wishes. PP
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.