How a Roth IRA Can Fund Your Childs College Tax-Free

Episode 38 of Roth IRA with Fexingo: Lucas and Luna explore a little-known strategy — using a Roth IRA as a college savings vehicle that can outperform a 529 plan for some families. They break down the mechanics: Roth IRA contributions (not earnings) can be withdrawn tax-free and penalty-free at any time, including for a child's education. Using a concrete example of a parent contributing $6,500 per year for 18 years, they show how $117,000 in contributions can be pulled out for college without taxes or penalties — while earnings keep growing tax-free for retirement. They compare this to a 529 plan's limited flexibility and potential tax drag. The episode also covers income limits, the 'kiddie tax' trap when the account is in the child's name, and why this strategy works best for parents who are already maxing out their own retirement savings. Specific, actionable, and grounded in 2026 contribution limits. #RothIRA #CollegeSavings #529Plan #TaxFreeWithdrawals #ContributionBasis #KiddieTax #FinancialAidImpact #ParentSavings #RetirementPlanning #EducationFunding #TaxStrategy #IRAWithdrawalRules #CustodialRothIRA #Fidelity #Vanguard #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo