A significant change to 529 savings plans now allows unused funds to be transferred into a Roth IRA without tax penalties, starting in 2024. This change helps families who have leftover money in their 529 plans but were previously limited in how they could use or withdraw it. However, there are specific requirements, such as the account being open for 15 years, and other rules to consider, like the annual Roth IRA contribution limit.

Key factors that reveal why private schools can offer surprising value and strong career outcomes.

A practical guide to understanding aid, covering funding gaps, and planning for college costs.

Explore practical college funding options, from 529 plans to Tuition Rewards-, to help your family prepare for future educational expenses.

Learning the financial landscape of 529 plans is important, as each college saving option may have a different impact on your eligibility for financial aid. If you need help determining which options work best for your circumstances, you should consult with your financial professional or tax advisor before you start saving. If you are interested in learning more about 529 plans, the following questions will provide a helpful overview.

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future educational costs. 529 plans, legally known as qualified tuition plans, are authorized by Section 529 of the Internal Revenue Code. Withdrawals used for qualified educational expenses are tax free and can be used at any accredited college or university for full-time undergraduate and graduate students.

Rule changes create clearer paths for family-assisted college funding.