Worried About Excess Funds in a 529 Plan? This Rule Could Save You.

When it comes to saving for college, a 529 plan has been the go-to for many people. Rightfully so, too. A 529 plan allows parents, grandparents, guardians, or other loved ones to put money into a tax-advantaged account to invest, (ideally) grow, and use it for qualified education expenses, such as tuition, books, and other relevant fees.Although money in 529 plans is intended to be used for college, there's always a chance that someone decides against going that route. Unfortunately, this presents a problem because there are penalties for using money in 529 plans for non-educational expenses. Until now, that is.Thanks to a new rule from the IRS, up to $35,000 in unused funds in a 529 plan can be rolled over into a Roth IRA per beneficiary in a lifetime. This allows families to use unused funds to help further their beneficiary's retirement savings. Let's take a look at how it works.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool