Roth IRA vs 529 Plan for College Savings

Episode 27 of Roth IRA with Fexingo tackles a tricky personal finance decision: should you use a Roth IRA or a 529 plan to save for your child's college? Lucas walks through the tax mechanics of each account, the penalty rules for non-qualified withdrawals, and the impact on financial aid. Luna pushes back on the common advice to always prioritize the 529, pointing out that the Roth IRA offers flexibility if your kid doesn't go to college or gets a scholarship. The hosts run the numbers for a typical family saving $500 a month from birth to age 18, comparing outcomes under different scenarios. They also discuss the 'Roth IRA as backup 529' strategy, where you fund a Roth IRA aggressively and use it for college only if needed. By the end, you'll know which account wins for your specific situation, and how to hedge your bets. #RothIRA #529Plan #CollegeSavings #TaxAdvantaged #RetirementPlanning #FinancialAid #EducationFunding #UserExperience #PersonalFinance #Investing #Finance #FexingoBusiness #BusinessPodcast #Podcast #FamilyFinance #TaxPlanning #WealthBuilding #MoneyTips Keep every episode free: buymeacoffee.com/fexingo