529 plans will be able to be rolled over into an IRA

[ellipses84]

This was the best article I could find outlining the 529 changes, although I’m not an accountant and not familiar with the source.

www.journalofaccountancy.com/news/2023/jul/the-new-529-rollover-roth-ira.html

[dcn]

The Journal of Accountancy is issued by the American Institute of CPAs, it’s legit.

Thanks for sharing!

[RockNVoll]

Thank you, this is really interesting!

[scm1011]

Wow, this is great! Thanks for posting.

[hbomdiggity]

While it’s something, it seems pretty limited. Esp the $35k lifetime limit, given how much we are being told to save for 4 years of college.

[ellipses84]

Sept 12, 2023 11:41:00 GMT -5 hbomdiggity said:

While it’s something, it seems pretty limited. Esp the $35k lifetime limit, given how much we are being told to save for 4 years of college.

Yeah, I feel like our Gov’t is stuck in the 1989 when it come to limits and what they think things cost (and minimum wage). Like, don’t most of you representatives also live in HCOL areas?!!

[EvieEthelGarland]

Sept 12, 2023 13:30:39 GMT -5 ellipses84 said:

Sept 12, 2023 11:41:00 GMT -5 hbomdiggity said:

While it’s something, it seems pretty limited. Esp the $35k lifetime limit, given how much we are being told to save for 4 years of college.

Yeah, I feel like our Gov’t is stuck in the 1989 when it come to limits and what they think things cost (and minimum wage). Like, don’t most of you representatives also live in HCOL areas?!!

The daycare FSA limit has been unchanged since 1986. I thought that was ridiculous when I started working in 1996 and even more so now that I've paid close to 100k for daycare. For one child.

I have a Coverdell account for my DS and between that the FSA my parents started, we might've oversaved.  It looks like this doesn't apply to Coverdell's but that I could roll it over to a 529?  I'm also thinking of doing CDs now that he's in high school and rates are higher and we don't have much time to recover from a potential downturn. Why is this so complicated?

[flygirl]

So if we put a lump sum in a 529 right now and he doesn’t go to school for 5 yrs, e could essentially roll $35k into a Roth?

[EvieEthelGarland]

Sept 14, 2023 16:56:16 GMT -5 flygirl said:

So if we put a lump sum in a 529 right now and he doesn’t go to school for 5 yrs, e could essentially roll $35k into a Roth?

it has to be open for at least 15 years before rolling over. 

[flygirl]

EvieEthelGarland, it will be by the time he goes off to school, so if I put an extra 35k in now, he doesn’t use it for school, then I could roll it over for him?

[EvieEthelGarland]

Sept 16, 2023 16:26:59 GMT -5 flygirl said:

EvieEthelGarland , it will be by the time he goes off to school, so if I put an extra 35k in now, he doesn’t use it for school, then I could roll it over for him?

I'm reading it as 35k total, not 35k + growth but since my DS is a HS freshman, I haven't looked into this much. Based on what we have saved, I think we can easily afford in state tuition (or equivalent) and dorm fees, but I'd be shocked if we had any leftover. 

[ohgillian]

Sept 16, 2023 16:26:59 GMT -5 flygirl said:

EvieEthelGarland , it will be by the time he goes off to school, so if I put an extra 35k in now, he doesn’t use it for school, then I could roll it over for him?

It's $35,000 total - so you could roll the $35,000 but not the growth/earnings on it.