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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.
Is there any reason to put money into a 529 before maxing out my Roth IRA? From what I can tell, both are very similar, but the 529 can only be used for education otherwise there may be a penalty/tax hit to withdraw the funds.
Seems like I should focus more on the Roth given my age. If I'm not missing anything, it gives me the option of using that money for college bills for the little guy or still have the option to use the money for anything else, without penalty, if the college outlook changes 18 years from now. Anything I'm missing? Thoughts?
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Financial Planners generally will tell you not to use your retirement funds for a child's education. They would say to open the 529 and keep your Roth for you.