You pay no income tax on the income when it’s earned, and as distributions are made from these accounts to your designated beneficiary for qualified educational expenses, the income portion of the distribution isn’t taxed, either to you or to your student.

When you check out your job, one of the many formsthat you’ll likely have to fill out is a 401(k)giving out election form.(Distributionis employee-benefit-speak for the payment of your vested 401(k) cold hard cash to …