Should You Tap Retirement Savings to Fund College? There are three things to consider before dipping into retirement savings to pay for college. Share | Have A Question About This Topic? Name Email Address Message Thank you! Oops! Related Content Paying Tax Later Doesn't Always Mean Paying Less 401(k) savings are taxed as ordinary income when funds are withdrawn. 5 Original Ways to Show Your Love One of the best ways to love the people you care about is through properly protecting yourself, and them. Protect Your Retirement Income Gain the confidence and ability to enjoy retirement the way it should be enjoyed.