<p>I am not a financial advisor - just a parent but here is my 2 cents worth. My first thought on looking at this is why would you ‘borrow’ against the retirement fund at this point? If you borrow it tomorrow you would be incurring interest on the loan starting tomorrow so would pay 5 years of interest in order to move the investment from one investment vehicle to another - the 529 account would not neccessarily make more money than the retirement account so you are incurring a pointless expense. $35,000 at say 6% interest for 5 years is going to cost you $10,500 over 5 years.Makes no sense to me. If you find you need to borrow from it for college do it when the time comes - not now. Depending on your ages I would not really recommend touching your retirement accounts as you need to provide for your own futures as well as the kids education.</p>
<p>If your child/children are likely to be eligible for financial aid bear in mind that money in retirement accounts and home equity are not taken into account as assets in the FAFSA calculation.</p>