Savings For College via IRA



Some individuals don't realize that their IRA can be used to fund their children's education expenses. You should consult your tax advisor for specifics and whether you qualify. Under certain conditions money can be withdrawn without penalty before retirement age is reached. The only catch is it's taxable (since it wasn't taxed when put in) when withdrawn. For Roths its not since it was taxed when contributed. The potential advantages vs a 529 plan are that contributions to your IRA are tax deductible where as 529 contributions maybe not be depending on the state your live in. So you can fund your child's education, taking tax deductions along the way, as you also save for your retirement. Thus, having the option to use for college as well. One other potential advantage is that 529 plan asset selections are restricted to whats offered by the specific plan vs IRAs which can be managed by your advisor. This can lead to potentially investing in a wider variety of asset classes. For more information please contact us for details.


At Brecken Capital Advisors we actively manage clients assets through the use of 7 proprietary model portfolios designed to match each client's risk tolerance with our views of the market & economy. We use a combination of ETFs and individual stocks with TD Ameritrade Insitutional as our custodian who does not charge trading fees. Additionally, we transparently measure both cost & performance for our clients. For more insights see our website and disclosures found there at BCA.

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