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Reply to "Roth IRA to pay for kids' college vs. 529"
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[quote=Anonymous][quote=Anonymous]I think you are right to be concerned that 529s may not be the best way to save for college. My understanding is that you should max out your retirement savings before you save anything for college, i.e. $18k per year in 401k and $5500 per year in Roth IRA (per parent). If you are able to do that each year, then you can essentially afford to pay most college expenses out of pocket without hurting your retirement too much (meaning you pay $18k + $5500 in college expenses while DC in school instead of saving for retirement. Also, Roth contributions can be withdrawn for educational expenses without penalty). If you still have money to save, then contribute to 529. [/quote] This is what we are doing. 401k fully funded, Roth IRA fully funded, the rest to a 529 to the extent that we can. [/quote]
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