"I am an 18-year-old student at a community college, and I plan to transfer to a four-year institution next year. I earned $30,000 from various jobs and was interested in finding ways to save on taxes while saving for college. I came across traditional IRAs and thought of opening an account. I know that I can withdraw money penalty-free if used for educational expenses. I plan to contribute the full amount to lower my taxable income, invest the money in funds and stocks, and possibly do some short selling. The distributions within the IRA aren't taxed, and when I am not working after I transfer, there will be no other income. Therefore, I can withdraw the money for educational expenses without getting taxed as much due to the standard deduction. Do you think this plan will work?"
original posted by quicksilver-2605 to r/personalfinance on Wed, 27 Mar 2024 15:50:26 GMT.