Roth IRA College
Using a Roth IRA as an Education Saving Account is a clever way to pay for college. Since the account is a Roth IRA it has all the benefits of this tax sheltered account (see Roth IRA details), such as tax-free growth of earnings, dividends, and interest -- AND the ability to withdraw funds penalty-free to pay for college expenses.
If it turns out that your kids don't go to college, then you keep the funds for your retirement savings benefits TAX-FREE.
Unlike the Coverdell ESA the remaining funds do not have to be disbursed by the time the child reaches age 30 -- which creates a taxable event. Additionally, the child's ability to qualify for financial aid is unaffected by the assets held in the Roth IRA. Of course, the biggest drawback to this strategy would be the depletion of your retirement savings.
Mutual Funds, Stocks, Bonds, ETF's, and many other securities allowed.
Contribution Limit = $5,500 per year; or $6,500 if age 50 by December-31st. Contributions can be made for the previous year up to the April 15th tax filing deadline.
Max income to participate (single): $127,000 / Max income (married): $188,000.
HOW can we help YOU?
Getting Started doing business with Us is an Easy 2-step process…
Step 1: Enter some basic information on the 'Contact Us' page.
Step 2: Complete a 10-minute telephone interview to discuss your financial situation, time-frame, goals and objectives; with no obligation, we'll answer any questions you may have, and go from there.