Maximizing 529 Advantages
Maximizing After Graduation
Keeping the accounts open after graduation has become much more important.
- Consider helping jump-start a retirement fund with a $35,000 Roth rollover. Depending on account start date and contributions, the conversion may be started any time the beneficiary has earned income over the age of 15 years.
- Consider helping pay off qualified student loans up to $10,000, including for siblings of the beneficiary.
- Consider helping with initial credentialing courses, or with later licensing, continuing education expenses, or recredentialing exams.
- Consider that the beneficiary may later go back to school for a master’s or other degree some day.
- Consider continuing to yearly maximize the state tax deduction or credit throughout your life for your entire family, building account wealth for children, grandchildren, and further posterity.
- Toward end of life, consider transferring account ownership to the next generation to relieve yourself of any paperwork or logistics worries.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.