Author Topic: Roth IRA question  (Read 2567 times)

Jules13

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Roth IRA question
« on: June 11, 2014, 05:48:18 PM »
I have just learned about using ROTH IRA funds for education rather than a 529 in order not to avoid the savings counting against me on FAFSA and I have another question about that.  Does it matter if the education is in another country?  And, does a ROTH have the same education "requirements" in terms of needing to be a tertiary education institution?  Are there any other requirements for using ROTH IRA for education?

I'm just wondering why that isn't promoted more instead of a 529?  It seems to be a much more flexible way of saving for college since it's not savings that are required solely for education like a 529. 

Is it because many are able to save enough for retirement to max out 401k and Roth IRA caps, so need the extra like option like a 529?

We currently max out the 401k (only my husband works for pay) and put $250 each into both Roths and $150 each into two 519 plans. 

Wondering if we should nix the 529 saving until we are able to max out the Roth?  Opinions?  Advice??

Thanks.


bikebum

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Re: Roth IRA question
« Reply #1 on: June 11, 2014, 06:15:44 PM »
I don't know the answers to your questions, but you can use Roth IRA contributions (not earnings) anytime for anything without penalties.

Jules13

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Re: Roth IRA question
« Reply #2 on: June 11, 2014, 06:52:54 PM »
Well bikebum....that might just sort of answer my question. :)  I'm thinking we'd be better off just trying to fully fund the Roth on top of fully fund the 401k before we add to the 529. 

Thanks!!