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ROTH IRAs vs. 529 Plans

ROTH IRAs vs. 529 Plans

| August 18, 2021

Back-to-school season can be a great time to consider how you plan to help your children or grandchildren fund their higher 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.

To learn more about these two options, click here to download “Planning to Save for High Education: Roth IRA vs. 529 Plan.”


For professional assistance with your education planning needs, contact our office at 281-999-1283 to schedule a time for a visit.

State tax laws and treatment may vary. Earnings on non-qualified distributions may be subject to income

tax and a 10% federal penalty tax. Please consult your tax adviser for more information.