After Graduation

11 rules · 10 worked examples

The rules in this chapter

  1. 1You should consider leaving the account open after post secondary education is finished, as there remain many benefits.Does the beneficiary have siblings, nieces/nephews, or others the owner wishes to continue helping with education costs?
  2. 2You may want your OWN account after college to pay for up to $10,000 qualified education loan principal or interest.Americans owe $1.863 trillion in federal and private student loan debt as of the first quarter of 2026.
  3. 3You can repay a sibling’s student loans up to $10,000 as well.You may pay up to $10,000 of principal and interest on qualified education loans for a sibling of the beneficiary (including step-siblings).
  4. 4You may transfer any extra funds to a family member (younger sibling?, grandchild?) who needs them.”Ladder of giving”- shifting funds by age from oldest to youngest as they are needed.
  5. 5You could consider establishing a “ladder of giving” approach for your children and then grandchildren.”Ladder of giving”- shifting/transferring funds by age from oldest to youngest as they are needed.
  6. 6You may roll over any extra funds to a Roth for the beneficiary up to $35,000.A longstanding concern for more wealthy families was overfunding a 529.
  7. 7You may pay for continuing education through a 529 account, the rest of your entire career.Continuing education is constant for many professionals.
  8. 8You may pay for extra credentialing, registered apprenticeship expenses, or certificates through a 529 account.Jake, a 30y/o Idaho pharmacist is finally gainfully employed and has not used his 529 account the last 5 years.
  9. 9You may pay for your Credentialing expenses or your occupational licensing through a 529 account, including years after graduation.The 529 account can pay for classes and programs to help people switch careers or grow in their field.
  10. 10You may pay for your licensing through a 529 account, throughout your career.State relicensing fees for nurse practitioners are significant.
  11. 11You may want to close the account and pull excess funds out:Keep receipts of any qualified or non-qualified distributions.