Traditionally, 529 accounts have been an option in which savings could be accumulated and invested toward the purpose of funding a loved one’s education expenses. Money can be set aside in the 529 plan as a lump sum or over time, invested in the markets, and grow tax free.

The real beauty and benefit of a 529 education savings plan is typically realized when the beneficiary uses the money and all its tax-free growth on qualified education expenses. But now, thanks to new legislation, the savings and growth from this investment can potentially be rolled into a Roth account.  

In this episode, Alex sheds light on updates to how 529 savings can be used for expenses other than education per the Secure 2.0 legislation. 

In this episode, you’ll also hear:

• Tax benefits of a 529 account 

• Understanding what qualifies as an education expense 

• Why a Roth IRA option is a game changer 

Must-listen moments: 

[00:02:18] A 529 account is a college education savings account where you can set aside some money, whether in a lump sum or over time, to a plan for future education expenses for a beneficiary.

[00:05:00] The fees inside of the 529 plan should be very low or non-existent for opening and closing of them, along with maintenance of them.

[00:08:38] Starting in 2024, there will be the ability after the 529 account has been opened with the same beneficiary for more than 15 years to roll over some of, or potentially all of it, to a Roth account.

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