The 529 Plan is a savings vehicle for higher education. Historically, it had a forced distribution at age 30. But --- Troy Sharpe of Oak Harvest Financial Group says the rules are changing! "With this new legislation, up to $35,000 of left-over funds inside that plan can be rolled over to a Roth IRA and then compounded for many, many years and be used for the former student's retirement income!" There are a few stipulations: "Money must be in your 529 Plan for at least 15 years. Any contributions made in the last 5 years will not be eligible."
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Sharpe gives an example: "Many parents made 529 contributions to their children over the years and because of the growth of the market, and all those funds weren't used for their education. Now those kids can roll the money into their own retirement account that will be tax-free FOREVER!"
It could pave your child's way to a comfortable retirement!
photo:Getty
College grad with a start on her retirement.Photo: Getty Images