Calculate the FW (future worth) of savings under each plan, IRA and Roth IRA.

A 529-state-approved Individual Retirement Account (IRA) permits parents to invest tax-free dollars into their children's college education fund (this money may only be used for educational expenses). Another popular plan, the Roth IRA, requires after-tax dollars to be invested in a savings fund that may (or may not) be used for paying future college expenses. Both plans are tax free when the money is eventually withdrawn to assist with college expenses. Clearly, the 529 IRA plan is a better way to save for college expenses than the Roth IRA. Quantify "better" when the marginal income tax rate is 33% and $12,000 each year is invested in a mutual fund earning 6% per year for 8 years. Note: The estimated cost of a college education 8 years from now is $108,000. A 529-state-approved Individual Retirement Account (IRA) permits parents to invest tax-free dollars into their children's college education fund (this money may only be used for educational expenses). Another popular plan, the Roth IRA, requires after-tax dollars to be invested in a savings fund that may (or may not) be used for paying future college expenses. Both plans are tax free when the money is eventually withdrawn to assist with college expenses. Clearly, the 529 IRA plan is a better way to save for college expenses than the Roth IRA. Quantify "better" when the marginal income tax rate is 33% and $12,000 each year is invested in a mutual fund earning 6% per year for 8 years. Note: The estimated cost of a college education 8 years from now is $108,000