What are Traditional and Roth IRAs?

While many people may think of Traditional and Roth IRAs as retirement savings vehicles, current tax law allows investors to tap these accounts for qualified higher education expenses. Any account earnings will be taxable when withdrawn if the accountholder is under age 59½, but withdrawals are exempt from the 10% penalty if used for qualified higher education expenses.

What’s more, the federal financial aid formula does not take retirement assets into account, meaning that the student may qualify for increased financial aid. However, the Traditional or Roth IRA distribution will affect the student’s eligibility for financial aid in the following year as it must be included in the parent’s income.

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We have answers. Our Financial Professionals have the skills, knowledge and experience to guide you in crafting and implementing an effective plan designed to reflect your unique investment and retirement goals – or simply answer any questions you may have. Let one of our Financial Professionals walk you through the process every step of the way and review which options are best suited for you to help you feel more secure and worry a little less.