Unused 529 College Savings Funds Can Roll into Roth IRA
1 report, 1 independent
Updated Apr 13
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What happened
New rules permit unused 529 college savings funds to roll into a beneficiary's Roth IRA. This transfer is available up to a lifetime limit of $35,000. The rule is part of the broader changes under the SECURE 2.0 Act.
From aol.com
Why it matters
The rule aims to address the risk of overfunding in 529 plans. By allowing the funds to convert, it provides an option for parents who may have been deterred from college savings due to the potential for overfunding.
The SECURE 2.0 Act pushed the Required Minimum Distribution (RMD) start age to 73, and IRS rules govern Roth and Traditional IRA conversions.
From aol.com