Wipfelder wrote:Tiago Splitter wrote:You can't withdraw from a 401k for higher education expenses. Even if they let you you'll have to pay a penalty on the distribution. If you separate from service or otherwise can take the money out you can roll to an IRA for the penalty exception, but you'll still owe taxes on any distribution from there.
Not that I disagree with the philosophy of 401k before 529; if you aren't funded for retirement yet let the kids handle their educations themselves.
But it's all basically moot if you've got enough money to cover the kids expenses for school right? Like how many big-law lawyers' kids get significant financial aid that isn't loans?
Well, those people are either partners/counsel since we're talking about college-age kids so for them it is moot.