421 | Secure Act 2.0 Deep Dive | Sean Mullaney
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Is the 529 Education Plan Right for You?
Congress acknowledged this issue of sort of the abandoned 529 or the useless 529 because we just don't have any other education expenses in the picture. We'll let you $35,000 per beneficiary roll unused money in that 529 into the beneficiary's Roth IRA. This is a good way to bail out the old unused 529 money, but it doesn't create new Roth limitation. The only money that can be rolled in this fashion is money that was contributed at least five years ago and the earnings on that money are not adjusted for inflation. And so what folks worry about is sort of overfunding the 529. So again, they're trying to avoid stuff and right now I'm sure there are some ways
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