How do Roth IRAs compare to Traditional IRAs for college savings?

A key benefit of Roth IRAs is that distributions are not taxed as earnings until the entire principal balance is withdrawn. That means you can take out as much as you put in tax-free to pay for college and withdraw the earnings portion tax-free when you turn 59 1/2.

Which IRA is best for college students?

The Roth IRA

The Roth IRA is a perfect choice for college students because the money you are saving for the future is still available in the event something unexpected happens while still in school. You have access to the funds when you need them.