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It's National 529 Day!

It's National 529 Day!

May 29, 2024

May 29th is National 529 Day!

A day to focus on college savings, and in particular 529 Plans.

My wife and I recently went from zero to two grandchildren over a weekend! (No twins but both of our children had their first child.)

And this has had me thinking about the best college savings plan for kids today. 

Over the years I have seen split opinions from my clients:

  • The Definitely College Group
  • The Flexible Decision Group 

Some people prefer flexibility when saving for the next generation in the event that, instead of going to college, they may be entrepreneurs or pursue a trade career.

In this case you might not want college focused restrictions on the savings.

However, there have been recent developments that now allow some unused portion of a 529 plan to be converted to a Roth IRA for the beneficiary.

The IRS is still hammering out the details on this procedure.

This new development has me even more excited to use the 529 over other savings options.

Here are some additional benefits of 529 plans:

  • Tax-free earnings if used for college expenses
  • Contributions may be eligible for a state income tax deduction
  • Anyone can contribute – not just the account owner
  • And a 529 Plan can also be used for technical schools and training so if you do have an entrepreneurial child they can still benefit.

Hopefully this has sparked some thought in what direction to go with your college savings.

Let us know if you would like to discuss the options further.