Check my math, please - IRA vs. 529

mommdc
Fri, 16 Mar 2018 02:01:47 +0000

Look into Roth IRAs further, I am no expert, but I thought that the contributions can be withdrawn at any time without penalty. The 5 year rule might only apply to any earnings.

Also, since you mentioned the FAFSA formula, did you look what the asset protection allowance for you is (goes by age).

Do you have over that amount in the bank and 529 as unprotected assets?

$5,500 would add $300 to your FAFSA EFC.

FAFSA EFC is primarily used for federal and maybe state aid eligibility.

Some schools will give institutional aid based on FAFSA EFC. But you will probably still be gapped.