I learned a few new things yesterday about financing your own or your kids' higher education at the Nortel provided on site seminar by Shannon M. Harris, an Ameriprise financial advisor:

1. 529 plan max contribution is $250K per account. Investment gain are tax free. Withdrawal for purposes other than higher education will be tax at income tax rate plus penalty of 10%. It's good if you already max out your $4000 per year IRA contribution limit.

2. Roth IRA can be withdrawn for higher education, taxable at your income tax rate, without the 10% penalty like 529, provided that the account has been open for at least 5 years.