Retirement funds tapped for kids' tuition
WASHINGTON (CNNMoney.com) -- Nearly a quarter of the nation's parents saving for their children's college education intend to raid their own retirement accounts, despite increasing their tax liability, according to a new study released Tuesday.
The results of the survey, conducted by student loan provider Sallie Mae and the Gallup organization, surprised personal finance experts - especially considering other options, such as 529 college savings plans, that can grow and be spent on college education tax free.
Some 24% of parents said they planned to save for college by dipping into retirement accounts, such as 401(k)s, IRAs and pension plans. The same percentage, 24%, said they plan to use 529 accounts


President Barack Obama, accompanied by President's Economic Recovery Advisory Board (PERAB) Chairman Paul Volcker, left, and Dr. Jill Biden, wife of Vice President Joe Biden, addresses the PERAB, Monday, Oct. 4, 2010, in the State Dining Room of the White House in Washington. (AP Photo/Susan Walsh)

