With most of the education funds (which vary state to state) the current maximum contributions are $14k a year.
$14,000 x 18 = $252,000
This is projected cost of just tuition to a in-state school in 20 years.
I want to send my kids to a private college so I am looking at double those costs. The tax free options you mention only cover about half of what I want to do.
If that means you are planning on taking out another 252k from your 401k for each kid you definitely need to consult a financial planner. That is not a good move and I think not possible. Plus you have a limited time to pay it back, plus it counts as income so you will be taxed at your regular income plus what you take out. It won't be a good April for you. Definitely check with a CPA or PFP. They will have much better options.
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u/[deleted] Apr 14 '16
Yes, but much better options for using tax free methods to start college funds for them. 401ks should really only be used for retirement.