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Can we still use the 529 plans without penalty? Vawn Himmelsbach. ... If you withdraw the money for non-qualified expenses, then those withdrawals are subject to taxes — plus, there’s a 10% ...
The 529 plan must be open for at least 15 years before attempting the 529-to-Roth rollover. And funds deposited in the last five years and their associated interest are not eligible for this transfer.
In cases where a child doesn't go to college, families still have some flexibility in using the funds without paying a withdrawal penalty. A 529 college savings plan allows families to save money ...
A 529 college savings plan, also known as a qualified tuition plan (QTP), is one of the best choices for meeting student educational expenses. Two of the 529 plan’s best features are tax ...
Early withdrawal penalty encourages saving. Earnings grow tax-free. May be able to get a state tax deduction for your contributions. Money is considered a parental asset, an advantage for ...
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Thanks to new rules set out in the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act of 2022, unused 529 funds can be transferred to the 529 beneficiary’s Roth IRA account.
The rule is part of the SECURE 2.0 Act and is designed to give families more flexibility with unused 529 money. ... you can withdraw 529 contributions without a penalty if you are using the funds ...
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