Do Not Withdrawal From A Retirement Account To Pay For College (Quick Tip)
Updated 7/8/2024
Paying a child’s college tuition from your retirement account is a costly mistake that could potentially jeopardize a financially secure retirement due to tax penalties, lost compounding interest, and missed market gains. Consider that you can take a loan for college, but you can’t take a loan for retirement. I recommend finding alternative funding such as student loans, savings from taxable accounts or 529 plans, work study programs, internships, or encourage your student to consider starting off at a community college with much lower tuition where no financing is needed.
This blog is for general educational purposes and does not constitute financial, tax, or legal advice. Please contact our firm for specific advice applicable to your personal financial situation.