Reply to Taking IRA/401K money for college

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[quote=Anonymous]You have to look at your specific situation. I don't think it's worth paying a 10% penalty, for example. Here are some potential options:

--Direct current contributions to retirement to a 529 plan now so you can save up for tuition which will be due in July or August of next year.

--Pull contributions from a Roth IRA; remember, though, you will lose room in this account forever

--Pull any amount from a Roth IRA that has been open for more than 5 years; same problem as above

--Pull from your taxable account and consider SEPP payments from your 401k at age 55 (https://www.irs.gov/retirement-plans/substantially-equal-periodic-payments)

--Reduce your expenses and cash flow college

If you really do have enough to be considering retiring early in your 40s, then I suspect you can come up with a good solution where you don't pay a penalty. I do question why you have not made a plan for college until your child is 17, though. Without solid numbers, I can't give you more advice, but happy to help if you post specifics. I don't believe dying with the most money in the graveyard is a worthy goal. Savings is deferred spending and now you have a reason to spend. You just want to find the optimal way to spend it without paying more than you must or stealing from your future life.
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