Using a Roth IRA for College | Ed Slott and Company, LLC

Using a Roth IRA for College

A client wants to use his Roth IRA for college funding rather than a 529 for several reasons. He knows that he can withdraw the Contributions at any time and use for college expenses without any taxes or penalty.
If Earnings are withdrawn and used for "Qualified Education" expenses then there is no 10% penalty, but he will still pay taxes on the Earnings....unless he has satisfied the age 59 1/2 and 5 year Rule, CORRECT?

Yes, that is correct. But depleting his Roth IRA may not be the best choice if there are other options, or a better mixture of payment options.


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