savings vehicle for university (for myself)

[getsorted]

So, in another life, I started training for a new career. Unfortunately that life was in another country and the training I did is non-transferrable to where I live now.

I want to go back to school for a master's degree (required to work in the field) and am targeting fall 2024 as a start date. Total cost will be about $20k where I live, assuming I don't qualify for an assistantship or scholarships. I'm saving aggressively so that I don't have to take out loans.

Is there any particular advantage to utilizing a 529 or Roth IRA for this savings? With such a short time frame, I don't think investing those dollars would be smart, so the tax-free growth would be minimal. I'm already in a low tax bracket because I don't have a huge income (just over $50k and head of household). But I thought I would poll for opinions.

[Morning Glory]

I would do 529 up to the limit of any state tax benefit, then taxable after that. Of course fill your Roth buckets first but leave that alone for retirement. You could also look into employers that provide tuition reimbursement.

https://finaid.org/savings/state529deductions/

[getsorted]

I would do 529 up to the limit of any state tax benefit, then taxable after that.

Oh, thank you! That's something I hadn't thought of. I am funding a 529 for my child at $5k/year, but my state allows me to write off up to $8,000.

[reeshau]

I would do 529 up to the limit of any state tax benefit, then taxable after that.

Oh, thank you! That's something I hadn't thought of. I am funding a 529 for my child at $5k/year, but my state allows me to write off up to $8,000.

Some states will penalize you for contributions made in the same year as withdrawals.  You are at least fine until the year you start, but make sure you know the rules if you need to continue to save after that.