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954: How to Transfer Money from a 529 to a Roth IRA (for you OR your child)

Radical Personal Finance

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The Taxation of Investments

There are two kinds of prepaid tuition programs. There is no upfront tax break on the money that gets contributed into the account. You invest the money, hopefully for gain over time. When you take the money out, as long as the money is distributed from the account for qualified educational expenses, then you are not required to pay the income tax on the asset.

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