Worried about putting TOO much money into your kid’s 529? 👀💰 Here’s something a lot of parents don’t know: certain unused funds in a 529 plan may be eligible to roll over into the beneficiary’s Roth IRA — without the usual tax and penalty consequences of a non-qualified 529 withdrawal. But there are rules 👇 The 529 generally must have been open for at least 15 years, annual Roth IRA contribution limits apply, the beneficiary must have enough earned income, and there’s a $35,000 lifetime limit on 529-to-Roth rollovers. Contributions and earnings from the previous 5 years generally aren’t eligible for the rollover. Other restrictions may apply. So if your child doesn’t use every dollar for college, that money may still have another tax-advantaged path available. 📈 ⚠️ This is for educational and informational purposes only and is not financial, investment, tax, or legal advice. Tax laws and IRS rules can change, and individual circumstances vary. Eligibility and tax treatment depend on your specific situation. Consult a qualified tax or financial professional before making financial decisions. Investing involves risk, including possible loss of principal.
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