Education Funding Roth IRAs vs. 529 Plans
The back-to-school season can be a great time to consider how you plan to help your children or grandchildren fund their higher education. In this short video, Ken Burke, CEO & President of High Falls Advisors, shares a few funding options for college education.
529 plans are a popular savings vehicle and have continued to gain popularity since the Tax Cuts and Jobs Act changed the law to allow distributions to be used to cover the cost of attendance at a public, private, or religious K-12 school, in addition to higher education.
A Roth IRA can also be a viable option to help fund college expenses. While a 529 plan does come with special tax breaks, a Roth IRA can provide more flexibility, allowing you to earmark as much or as little as you want for higher education expenses.For professional assistance with your education planning needs, contact us.