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 Question Thank you! Oops! Related Content Pickleball in Retirement Learn about the latest sport to sweep the nation with this informative article. Paying Tax Later Doesn't Always Mean Paying Less 401(k) savings are taxed as ordinary income when funds are withdrawn. An Inside Look at Retirement Living A number of questions and concerns need to be addressed to help you better prepare for retirement living.