Most parents would make this mistake for the sake of their kid's college fund

Most parents would make this mistake for the sake of their kid's college fund  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, JUN 05, 2019 YOUR WEALTH Editor's Note I have a very simple message for all those parents out there: Don't sacrifice your own retirement to pay for your kid's college education. Not surprisingly, 56% of parents said they are willing to go into debt to put their kids through school, according to a recent survey. While trying to help your child graduate debt-free is an admirable goal, many parents put themselves in jeopardy and end up reducing the amount of money they have saved to meet expenses in retirement. Folks, there are red flags with tapping retirement accounts. Withdrawals from your traditional IRA or 401(k) plans are counted as part of your gross income for that year. So, along with owing more in income tax, those withdrawals could push you into a higher tax bracket. If you're under age 59½, you'll also owe the IRS a 10% penalty if you take a hardship withdrawal from your 401(k) … that's if your employer plan even permits it. There are alternatives to tapping your retirement savings to cover college costs. For example, by starting to save early, parents can use a 529 college savings plan or a custodial account, such as a Uniform Gift to Minor Account or a Uniform Transfer to Minor Account. It's also smart to explore scholarship opportunities or simply look at other, less costly schools. Parents should consider the full impact of raiding their retirement accounts. It's natural for parents to feel guilty about not being able to help their children as much as they can. However, sometimes the best gift to their children can be for parents to secure their own retirement so they won't need to lean on their children later on in life. For more cool stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. Jim Pavia @JIMPAVIA Most parents would make this mistake for the sake of their kid's college fund More than half of parents are willing to go into debt to put their kids through college, according to a new report by Country Financial. The IRS releases its new tax withholding form. Here's what you need to know Unhappy with your 2018 tax results? The IRS has released a draft Form W-4 that could help taxpayers more closely pinpoint the amount of tax they need to withhold. Be ready to call your tax preparer and fish out your old tax return. Social Security trust fund could be depleted by 2035. Here's what to watch for Rep. John Larson has a plan to shore up Social Security benefits, but getting it passed will require Republican support. Here, the Democratic lawmaker talks about where the efforts stand. 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