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529 plans have two options: a prepaid plan or a savings plan. Colleges and states can offer prepaid plans, which locks in tuition at current rates for a student who may not be attending college ...
A 529 plan is a college savings plan that provides tax advantages when used for qualifying purposes, similar to a Roth IRA or 401(k), except the money is used for education rather than retirement.
Rolling 529 funds into a Roth IRA can give the beneficiary a head start on retirement savings, with benefits like tax-free growth, flexible investment options and no required minimum distributions ...
Can jumpstart a child’s retirement savings: Any leftover money in a 529 plan can be used to help a child get a good start on tax-free retirement savings. Cons of converting a 529. Cannot be ...
Excess 529 plan contributions can now take on a whole new purpose besides education costs that could prove even more valuable to the beneficiary.
Reasons to Change Your 529 Plan Beneficiary. A 529 plan, named after Section 529 of the Internal Revenue Code, is a tax-advantaged savings plan designed to encourage saving for future education costs.
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