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Here are the pros and cons of using a 529 or a Roth IRA to pay for college. ... namely that the 529 account must be open for at least 15 years before a conversion can take place. So while the new ...
Then you can use the funds to open a 529 account, tax-free and penalty-free. ... Pros of converting an IRA to a 529 plan. ... Cons of converting an IRA to a 529 plan.
In addition, new changes as part of 2022’s SECURE Act 2.0 allow money in a 529 plan to be rolled over to a Roth IRA in the name of the 529’s beneficiary as long as the account has been open at ...
529 plans are named after section 529 of the Internal Revenue Code—26 U.S.C. § 529.While most plans allow investors from out of state, there can be significant state tax advantages and other benefits, such as matching grant and scholarship opportunities, protection from creditors and exemption from state financial aid calculations for investors who invest in 529 plans in their state of ...
Starting in 2024, unused funds in a 529 account may be converted into a Roth IRA if the investor so chooses, though there are pros and cons. Families should carefully assess which type of account ...
The post Pros and Cons of a 529 Rollover to a Roth IRA appeared first on SmartReads by SmartAsset. ... This can leave leftover money in the 529 account that needs to be moved in order to use on ...
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