Roth IRA vs 529
@ahoefs wrote: If I open a Roth IRA in my name and later would like to use the monies including the capital gains for educational purposes for my child Does a childs education expenses qualify for a...
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@tjb_nc wrote: IRS Publication 970 covers the use of IRAs for education funding, and it may be a source for you to read. TJ Read full topic
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@texascfp wrote: The details are found on pp. 47-48 of IRS Pub 970. The are no provisions for TAX-FREE distributions from IRA for education expenses. You can have the 10% penalty waived for pre-mature...
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@iansdad wrote: Yes, your Roth IRA is eligible for tax-free distributions, penalty and tax free when used for post-secondary educational expenses such as tuition, books, etc. This is 1 of the...
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@dopps wrote: IansDad: Your statement is true if you are over 59 1/2. If younger, you can withdraw from a Roth penalty-free for post-secondary education expenses, but you will pay taxes on the growth...
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@iansdad wrote: Dopps, all Qualified distributions from a Roth IRA are penalty and tax free. Qualified distributions are defined as those taken after the age of 59 1/2, college expenses including...
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@gindie wrote: 6569||27131|||To set this straight, here is the quote directly from page 59 of the Roth IRA section of publication 590. I do not see any special tax treatment for college expenses. Are...
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@iansdad wrote: Sigh. Please call the IRS customer service group - 1-800-829-1040 to speak with a specialist for further clarification. In the meantime, here's verbatim from their site: Note, that...
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@texascfp wrote: IansDad: The issue that Dopps' post raised is that you must be 59 1/2 to get tax-free treatment (qualified withdrawal). This applies to a small portion of parents saving for their...
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@iansdad wrote: CollegeAdvisor: I suggest you contact the IRS (I've listed the number above) in order to get further clarification on "qualified" withdrawals from a Roth. They'll be able to help you...
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@stjoseph73 wrote: IansDad: If that is the case, then the IRS better get on the stick and revise its publications. There is too much chance for misinterpretation when speaking to IRS customer service....
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@iansdad wrote: StJoseph73: Another sigh, contact the IRS concerning how to use the Roth IRA. There appears to be alot of information and misinformation out there. If you're looking for clarification,...
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Roth IRA vs 529
@gindie wrote: I know that I won't get a response here, but I have to say it anyway... (From Post #8 Q.4. In addition to the Education IRA, TRA '97 also created the Roth IRA. May a taxpayer make a...
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@bwilk wrote: I am missing something or does every post from IansDad say that the withdrawal is not subject to the 10% early withdrawal tax. I never see where it is to be totally tax free. Read full...
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@stjoseph73 wrote: bwilk, No, I don't think that you are missing anything. Up until that last post from IansDad, I thought there was just confusion. But now I'm hoping that his clients have a bit...
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@texascfp wrote: If you take money from a Roth IRA before 59 1/2 for education you will: Pay no tax on your original contributions.Pay no 10% penalty on any of the W/D.Pay tax on any earnings above...
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@dopps wrote: Not to beat a dead horse, but, since I kind of ignited this ill-fated attempt to set Iansdad on the correct path, let me summarize. Other than death, disability or first-time home...
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@user_660 wrote: So, you're taking the word of someone in the IRS customer service department?????? (they are no specialist either) Evidently, you have no experience with them nor have you heard from...
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@bwilk wrote: I sent an email to IansDad regarding this and asking him to revisit this discussion and reconsider his stance. We'll see what happens. Mark A, That's not correct either, is it. Gindie's...
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@user_7746 wrote: Ok, I was getting ready to open a 529 for multiple children and decided to research alternates. Lucky me, I managed to get through this thread about Roth being a viable alternate....
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@tjb_nc wrote: G7 Joe covered the topic in his recent guru column: http://www.savingforcollege.com/529_plans/ezines/guru.php?guru_id=13 TJ Read full topic
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@dhurley wrote: I think there is a pretty strong consensus among advisors in the know- but I think I can see why IansDad is so obstinate on the matter. Iansdad makes the mistake of confusing...
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