Since you have already paid taxes on the money you have put in your IRA, you won't be taxed when you take that money out to pay qualifying educational expenses. If you withdraw some of your Roth IRA's earnings (the amount the account has grown), however, you will have to pay 10 percent tax on that income.
Roth IRA distributions may be used to pay for educational expenses for you, your spouse, child or grandchild.
Roth IRA distributions may be used at educational institutions that accept federal financial aid administered by the U.S. Department of Education. This includes virtually all accredited colleges and universities.
Distributions from your Roth IRA may help you pay for qualifying educational expenses such as tuition, books and supplies. Room and board also qualifies when a student is enrolled at least half time.
Look first to grants, scholarships, fellowships, employer contributions, gifts and other savings to pay college expenses, so will have enough money for retirement.