Is a 529 worth it in this case?

DigitalDad
Wed, 09 Oct 2019 19:30:10 +0000

No - that’ s the whole point of Roth vs. Traditional IRA.

Since you are putting in your AFTER tax (= NON-subsidized) money, you ARE permitted to withdraw whatever “own” money you had put in. So it’s a good way to “shelter” assets from the FAFSA form.

Only the tax-deferred (= subsidized) EARNINGS are subject to limitations.