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Message: <blockquote data-quote="sierra1995" data-source="post: 292876" data-attributes="member: 1059">3Roosters and SDMF nailed it. Only a couple things i can add to the conversation. a 529 fund (kids college account) also serves as a "Roth" type investment, as it grows tax free and it can be passed onto beneficiaries. So, if my kids don't use use theirs, they can pass it onto their kids, etc. Or if they don't use it, i can take it out, and pay a 10% penalty on the gains. There is also no limit on how much you can contribute into a 529. I've talked to several people who do this and plan to keep it for themselves, and are OK with paying the 10% penalty. you may also be taxed on the income from the gains if you take out for personal use. Even with the penalty and taxes, you're still money ahead if you need it. Roth IRA and IRA accounts are limited to $6,000 in contributions per year, or $7,000 if you're age 60 or older. 401k accounts, both Roth and Traditional, you can contribute up to $18,000 per year, or $24,000 per year if you are age 50 or older. As mentioned before, you (or your financial advisor/tax person) need to figure out what is best in your case, whether it is all Roth, all IRA or a combination. If you're at the top edge of your tax bracket, you may want to consider leaning more toward the IRA(traditional) option, but don't forget about the Roth option because tax-free growth is a good thing.</blockquote>