Check my math, please - IRA vs. 529

privateID
Thu, 15 Mar 2018 15:52:12 +0000

Seems to me that using an IRA for education is not a great idea they way you are doing it. The income in the beginning counts against financial aid in either case (IRA or 529). In the IRA case, however, the income counts against you a second time when you withdraw the money. If you withdraw the money after Jan 1 of his sophomore year, then it won’t be counted as parental income for financial aid. As another poster mentioned, a ROTH IRA could also get by that problem, but only if you have the account open for at least 5 years. If your son is a junior in high school, then you would also need to wait till about his sophomore (maybe junior year) unless you already have a ROTH IRA open.