Saving for son's college using Roth instead of 529 or coverdell.? - penalties when withdrawing from roth ira
I will be 60 if the child starts college. Instead of 529, which must be used for the university, I think opening a Roth IRA and contribute with the intention of using the money for college for my son. I think that since both 529 and Roth are not tax deductible, and the two are not taxable upon withdrawal, are equivalent, with one exception. If my child does not go to college, I would not be able to withdraw money tax free without penalty or 529th No problem with red is more than 59 1 / 2, last dass One point: What more grants and scholarships for eligibility questions?
Thanks
Monday, February 15, 2010
Penalties When Withdrawing From Roth Ira Saving For Son's College Using Roth Instead Of 529 Or Coverdell.?
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As is the creator of the tax professional, I advise on the liability side. You're right on the border of 529th If you have more than one child, 529 in the name of the child has no impact on eligibility for the grant of another child. If you have a child, then it is no real difference whether the money in your name or the name of his son. If your child is working, the money can be put into a Roth IRA in his name on the amount you earn. This includes an allowance for tasks to win. Then you can use that money later for some reason, if they do not withdraw until the result you have 59 1 / 2. In order to determine what is really suited to your family, you should talk to a Chartered Financial Consultant. Please contactme privately if you have a recommendation from a good idea.
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