Reply to Taking IRA/401K money for college

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[quote=Anonymous][quote=Anonymous]Hi,

we are mid 40-s with first child going to college next year. We have relatively large retirement balances, and only about 1/7th of that sum in brokerage/savings. We can probably cash flow college payments (talking $65K/year max college), but the idea is to take some of it from retirement. 
Here are reasons :
 - not punishable except taxes
- all our 401Ks will still be fully funded plus employer match, i.e. they wills till continue to grow
 - any extra beyond our 401K contributions we can put in brokerage to grow, but this will allow us to grow our easily accessible money in case we decide to retire earlier or scale down working BEFORE actual retirement age when 401K/IRAs become accessible for us.

I.e. the idea of depleting after tax brokerage/savings means we are limiting our ability to semi-retire earlier.

Opinions?[/quote]

Do not pull from retirement for college!!!

You can cash flow $65K.  So find a college for your kid that will cost less than that, either as the regular price or with merit.  Then your kid can contribute $10K (summer job, PT job at college) and take $5K in fed loans.  So you need a school under $80K But I'd stick with the $65K and be done.

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