CPA Advantage #4 | 529 Plans
Published on by Andy Bertke, Ryan Lauer, in Video, Wealth Management
Can’t watch the video? Get the transcript.
It’s hard to beat 529 plans for saving for a child’s education, and recent rule changes make them even more flexible. In this episode of The CPA Advantage, wealth management pros Andy Bertke and Ryan Lauer unpack who can contribute to a 529 plan, how the accounts can be used, and why they’re still a valuable long-term planning tool for funding education.
Who can contribute to a 529 plan?
Parents, grandparents, relatives, and even family friends can contribute to a 529 plan, making it easy for multiple people to help fund a child’s future education. While these accounts have traditionally been used for college expenses, recent changes now allow qualified withdrawals for K-12 education as well, expanding their usefulness for many.
What happens if a beneficiary doesn’t use all the funds in a 529 plan?
In many cases, the account can be transferred to another eligible family member, helping keep those education savings working for future generations. They also cover the newer provision allowing up to $35,000 of unused 529 assets to be rolled into a Roth IRA, subject to IRS rules and limitations, creating another potential long-term financial planning opportunity.
How do 529 plans work?
Whether you’re saving for a newborn or helping fund a grandchild’s education, starting early gives your investments more time to grow. This video explains how 529 plans work and why they remain an important part of education and wealth planning strategies for many.
Related resources
Be sure to catch the full CPA Advantage video series, with new episodes added regularly. You might also be interested in our free estate planning guide, or a deeper dive into 529 plans, with answers to some of the most frequently asked questions our pros hear. You may also be interested in other insights from our wealth management pros, and if you’d like to discuss specific questions, contact us today for a free consultation. As always, we’re here to help.
