: The earnings grow tax-free if used for qualified education expenses. Pitfalls to Avoid
: You may have to pay a tax plus a 10% penalty if you withdraw the money for something else. In addition, you’ll want to make sure your retirement and other important goals are on track before saving for education since financial aid is available.
Of course, one benefit all of these deductions share is the convenience of being on auto-pilot. But since they tend to be out of sight and hence out of mind, this can also easily be a source of missed opportunity. The good news is that this inertia can be made to work in your favor. By taking just a little bit of time upfront to make sure you’re making the most use of them, you can reduce your taxes, build your wealth, and insure against catastrophe before you even have a chance to waste your paycheck on something else.
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: 10 Common Money Management Mistakes That You’re Probably Making How To Teach Kids About Money: 10 Dos And Don’ts 10 Common Myths That Could Be Hurting Your Retirement Planning The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.