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Money in College Savings Accounts Can Instead Be Put Towards Retirement

Starting in 2024, due to the Secure Act 2.0, up to $35,000 of the money in a 529 college savings account to be rolled over to a Roth IRA for the beneficiary of the 529 account. Although funds in a college savings account going unused is rare, it’s not unheard of, and now you may not have to face a penalty for withdrawing those unneeded funds. 

For example, a student may decide not to attend college, or choose a more affordable school. In this scenario, the option to potentially move the money from the 529 into a Roth IRA may be of use. 

Learn more by reading this NY Times article. Click here.

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