Potential Magazine Fall 2012 | Page 15

Roth IRAs Roth IRAs were designed for retirement planning but do allow you to use them for college expenses. A benefit to this funding is that it does not penalize a student’s financial aid consideration (whereas 529 Plans can). However, the earnings on this investment will be taxed by both federal and state when used for educational expenses. Tuition, books and educational fees are considered eligible expenses, but room and board is not. Again, it’s important to consult a financial planner to understand the best vehicles for college savings investment. 529 bonus tip With a CollegeCounts 529 Rewards Visa Card, you can earn 1.529% on your everyday purchases. #2 Creative and Easy Ways to Save Upromise Upromise is an online shopping service that gives you 5-15 percent rebates to use toward a college fu