From: "woessner@gmail.com" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Planning for DD's college scholarships and financial aid
Date: Wed, 9 Aug 2006 09:59:02 -0500
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jIM wrote:
> Have you considered the "substantially equal withdraws" from an IRA for
> early retirement?  This may lessen the need for money in the taxable
> investment account.

This is unnecessary.  According to IRS Pub 590, early withdrawals from
traditional IRAs for qualified education expenses are exempt from the
10% penalty.  Qualified expenses for you, your spouse, your children
and your grandchildren are eligible.

The situation isn't so sweet with a Roth IRA.  You're still exempt from
the 10% penalty, but you have to pay income tax on any earnings you
withdraw.  Of course, you're free to withdraw your Roth contributions
as you wish.

There is no such exemption for 401k plans.

--Bill