Reader James Robinson (his blog is here) sent in a handy link describing the benefits of setting up a Roth IRA for the future payment of your kids’ education. A few key benefits are:

1. Roth accounts are not penalized for early withdrawal for higher education
2. Financial aide does not look at IRAs as income or saved money so you can avoid running into issues with other financial helps
3. If you happen to be a lower income household you get greater tax benefits
4. You can tuck money away for retirement and college into the same account

You can read the whole article here.

Thanks, James, for sending this in!

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This entry was posted on Tuesday, July 3rd, 2007 at 1:28 pm and is filed under General, Tips'n'Tricks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.