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Short Term Saving for MBA: 529 or Roth IRA?

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Author Message
Intern
Intern
User avatar
Joined: 02 Jan 2012
Posts: 38
Location: United States
Concentration: Technology, Finance
Schools: HBS '17
GMAT 1: 770 Q49 V47
GPA: 3.39
WE: Business Development (Computer Software)
Followers: 0

Kudos [?]: 9 [0], given: 2

GMAT Tests User
Short Term Saving for MBA: 529 or Roth IRA? [#permalink] New post 20 Apr 2012, 11:22
Does anyone have recent expertise dealing with best practices for investing short-term to pay for the MBA degree?

I've tried doing research, it seems that the true short-term benefit of 529 plans is bonus benefits by states: http://www.finaid.org/savings/state529deductions.phtml. 529 plans are not taxed on the growth of income, therefore they are less effective for short-term plans such as someone paying for their own MBA, but would this still be the best method?

It has also been cited that Roth IRA's are not considered by FAFSA when calculating financial aid packages. Therefore, for schools with liberal financial aid packages it would be beneficial to stockpile savings into Roth IRA accounts.

Can anyone advise on the best methods? Specifically for states such as Massachusetts or California which have zero bonus benefits for state income with their 529 plans.
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Short Term Saving for MBA: 529 or Roth IRA?   [#permalink] 20 Apr 2012, 11:22
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Short Term Saving for MBA: 529 or Roth IRA?

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