{"id":15669,"date":"2024-01-08T14:43:15","date_gmt":"2024-01-08T21:43:15","guid":{"rendered":"https:\/\/www.petersons.com\/blog\/?p=15669"},"modified":"2024-01-08T14:43:15","modified_gmt":"2024-01-08T21:43:15","slug":"how-529-college-savings-plans-have-changed","status":"publish","type":"post","link":"https:\/\/www.petersons.com\/blog\/how-529-college-savings-plans-have-changed\/","title":{"rendered":"How 529 College Savings Plans Have Changed"},"content":{"rendered":"

529 Plan is getting a big change and it’s a positive one. 529 college savings plans have been considered one of the best ways to save for college, but there was always a catch: the funds that are put into the 529 plans must<\/em> be used towards qualified education expenses like fees, books, housing, and tuition.<\/span><\/p>\n

But what if you don\u2019t use all or, in some cases, any of the money you\u2019ve put into a 529 plan because you or your child received a scholarship or decided they don’t want to attend college? Well now with 2024 in full swing, families can transfer any unused money from a 529 plan over to an individual Roth retirement account. What\u2019s more is the transfer is free of income tax or tax penalties.\u00a0<\/span><\/p>\n

Do note that there are still a few guidelines and limitations to the newly added benefit: in order for funds to be transferred tax-free, you must wait 15 years to roll-over funds from your 529 plan to your Roth IRA and you\u2019re not allowed to roll-over any contributions made within the last five years. There is also a maximum of $35,000 that you can transfer into your Roth IRA account. However, with time, $35,000 can increase substantially in a Roth IRA.<\/span><\/p>\n

The new flexibility of the 529 savings plan is all thanks to Secure 2.0 –\u00a0 a bill signed by the Senate and the House that gives individuals such as part-time workers, small business owners, military personnel, and student loan borrowers better access to retirement benefits.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

529 Plan is getting a big change and it’s a positive one. 529 college savings plans have been considered one of the best ways to save for college, but there was always a catch: the funds that are put into the 529 plans must be used towards qualified education expenses like fees, books, housing, and<\/p>\n","protected":false},"author":46,"featured_media":13844,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-15669","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-colleges"},"better_featured_image":{"id":13844,"alt_text":"","caption":"US dollars in the 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