I know a number of my friends who simply contributed to their IRA. Depending on your tax situation, the money may be tax-deferred, similar to a 529 plan. The biggest benefit is that you maintain absolute control of your funds. If your kid(s) decide to head to Colorado to become ski bums or decide to dedicate their life the monastic life, you're still stuck with an unused lump of money in a 529 plan. Plus, I don't think the 529 plans are quite as flexible as to where/how they can be used. However, funds can be withdrawn from your IRA PRIOR to 59 1/2 without penalty and be used for post-secondary education/college/vocational school for yourself, your children and your grandchildren. See below: "When you take money out of an individual retirement account before you reach age 59 1/2, the Internal Revenue Service considers these premature distributions. In addition to owing any tax that might be due on the money, you'll face a 10 percent penalty charge on the amount. But there are times when the IRS says it's OK to use your retirement savings early. Two popular, penalty-free withdrawal circumstances are when you use IRA money to pay higher-education expenses or to help purchase your first home. OK for school When it comes to school costs, the IRS says no penalty will be assessed as long as your IRA money goes toward qualified schooling costs for yourself, your spouse or your children or grandkids. You must make sure the eligible student attends an IRS-approved institution. This is any college, university, vocational school or other post-secondary facility that meets federal student aid program requirements. The school can be public, private or nonprofit as long as it is accredited. Once enrolled, you can use retirement money to pay tuition and fees and buy books, supplies and other required equipment. Expenses for special-needs students also count. And if the student is enrolled at least half-time, room and board also meet IRS expense muster. Read more: IRS rules for early IRA withdrawals http://www.bankrate.com/finance/money-guides/irs-rules-for-early-ira-withdrawals-1.aspx#ixzz1unmmZ6Hq