Better to combine 529 with Roth IRA?

I've spent some time reading these posts and similar advice so will attempt to summarize what I think I should do. At 41 with two children (4,1) and 2004 joint AGI 115k, I should be looking for some combination of 529 with Roth IRAs for kid's education - true? Wife and I each have the Roths in place, but haven't fully funded them in any given year - expect its time to do so. Is my best plan of attack to look at funding a single 529 to the point it can handle the first 3 years of college for the oldest, then dip into the Roths (note: wife and I will have acheived age 59 1/2 at that point). This should mean any distributions from the Roths would be tax free correct? Appreciate any feedback given.

Focus more of your energy on your retirement. Max out your Roth IRA (you can still max out for 2004 - $3000 until April 15, 2005) before any college funding. It's nice that you want to pay for your children's education, but maybe only pay for the first 3 years, then have them be responsible for the loan on the 4th year. You can take out loans for your children's education, but you can't take it out for your retirement. Don't get me wrong - if you can still retire comfortably by using some of the Roth funds for your children's education, then I say go ahead - just don't miss out on the retirement picture.

Have you enrolled in www.upromise.com?

Thanks for the advice. Yes, we've been enrolled in Upromise since first child's birth in 2001, but have yet to connect it with a 529.

Absolutely correct on the funding of the IRA's. The simple fact of the matter is that you can take money out of an IRA with no penalties for a child's college. So what happens if the child doesn't go to college.... nothing... you retire and spend the money when you hit 59.5. If the money is in a 529 you either take a penalty or roll it over to someone else. While I wouldn't think this would be difficult. Possible drawbacks can come into play if you live in a state that allows for a state income tax deduction for 529's. Plus if the child gets a scolarship, you can withdrawl a like amount without penalty... this is not the case for the IRA.

Another thing that I forgot to mention is that the 529 will count against the childs income to some extent depending on the circumstances. Not so with the IRA.