Quote:
Originally Posted by myselff77
For those parents out there... Do you have a 529 account to save for college?
I'm in an interesting situation being in my early 40's before having kids (only 1). I currently have a Roth, but I'm not close to maxing it out. By the time my son is ready for college, I'll be 60 and in theory can tap into the Roth funds.
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You can withdraw your contributions to your Roth at any time without a tax penalty. Its investment income you cannot withdraw without taking a hit.
Part of my divorce decree states that I am on the hook for providing each of my 2 kids 5k/year towards college( 4 years). I sat down and and did the math that this meant I needed to start putting away $250 a month immediately for this to not impact me. Fresh out of the divorce I wasn't putting anything away towards retirement. I put that 3k/year in my Roth knowing I could accumulate some retirement $ assuming investments paid off. I'm in a better place financially now and will likely max my Roth this year. I'll start looking for another place to put that money. Ideally I may be able to put away the entire amount I need for their college without having to touch the Roth, but its still there if I need it.