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What happened
This article provides strategies for families to effectively utilize leftover funds in 529 college savings accounts. It explores options such as changing the beneficiary, using the funds for graduate education, or rolling them into a Roth IRA, following recent legislative changes.
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Key insights
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1
Flexibility in 529 Plans
529 plans, traditionally used for college savings, offer flexibility in beneficiary designation, allowing for funds to be redirected within families.
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Legislative Changes
Recent legislative updates have introduced the possibility of rolling over unused 529 funds into a Roth IRA, providing more options for savers.
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Graduate Education Funding
Leftover 529 funds can be applied towards graduate studies, expanding their utility beyond undergraduate education.