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[quote=Anonymous]The Roth is great if there is a chance you may not need the money for college, as it gives you some flexibility if you don't need it for retirement. The gamble with the 529 is whether the chance on the 5.75% tax deduction outweighs the potential 10% penalty for taking it out if you don't use it on education.

Personally we are maxing 401k/tsp and ROTH (we are below the AGI threshold), then do the VA 529 invest (16k last year for 2 kids, both under 4). We hope to contribute around 50k/kid to the 529, expect that to grow to around 100k and cover the rest from post tax accounts, hope to not touch the Roth amounts.

Sidebar: If you are doing the VA 529 INVEST plan you get up to a 4k deduction per owner/beneficiary/fund combination. So if you have 2 parents each open accounts for 2 kids and invest in 2 funds you could deduct up to 32k/year:

Parent 1/child 1/total stock fund - 4k
Parent 1/child 1/intl stock fund - 4k
Parent 1/child 2/total stock fund - 4k
Parent 1/child 2/intl stock fund - 4k
ditto for parent 2 for a total deduction of 32k.

Google va ruling 10-240 for the letter ruling from the tax commissioner.  [/quote]

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