Enter a Roth IRA. 2) Consider a Traditional IRA for grad schoolIf you don’t have a retirement plan at work or if you meet the income limits, you can deduct contributions to a traditional IRA. Otherwise, you can contribute pre-tax to a retirement plan at work and then roll the money into a traditional IRA once you leave the job. In either case, the IRA money is penalty-free for qualified education expenses. Just be sure to keep any money you plan to use in the next 5 years very conservative like a money market fund or a stable value fund.

Source: Forbes April 29, 2018 13:52 UTC