Use a 529 Plan or a Roth IRA to pay for college

If you’re going to be paying for your son or daughter’s college education, prepare for a shock.

The price of a degree these days is sky high and the sooner you start saving, the better.

What’s the best way to prepare for the day you have to write that first big check?

You’ll find out when you read my new article titled Tax Tips: Child’s College: Use a 529 Plan or Tap Your Roth IRA?

Three ways our fact-filled article can help you:

1. We’ll explain how a Section 529 plan can help. Good news. The IRS places no limit on annual contributions to a Section 529 qualified tax-exempt tuition plan. There are two basic types of 529 plans that you need to know about. We’ll give you all the details when you read the full article.
2. We’ll tell you how your Roth IRA can come to the rescue. More good news. The money you withdraw from an IRA is not subject to the 10% penalty tax if used to pay for qualified education expenses. We’ll give you the whole story when you read the full article.
3. You’ll learn about the impact on financial aid. Do you have money in a Roth IRA or a 529 plan? Well, the money in one of those savings vehicles is taken into account for college financial-aid purposes. The money in the other one doesn’t. Which one is the winner? We’ll tell you when you read the full article.