Here are the pros and cons of using a 529 or a Roth IRA to pay for college. A 529 plan, also called a qualified tuition plan, ...

Two popular options are 529 plans and Roth IRAs. Image source: The Motley Fool A 529 plan is specifically designed to save for college costs and graduate school. Annual distributions of up to $ ...

The SECURE 2.0 Act, which became law in December 2022, changes the 529 plan rules to permit rollovers of some funds from these college savings accounts into a Roth IRA. It could allow transfers to ...

Reason No. 3 to use a 529: Unused funds can be converted to a Roth IRA. One issue with 529s has been if the plan is overfunded and the funds remain unused. For families on a tight budget ...

That's welcome news to families worried about having leftover or unused funds in a 529 plan account. The new Roth IRA rule, included in the SECURE 2.0 Act, will help beneficiaries avoid both taxes ...

Additionally, said CNBC Make It, "beginning in 2024, beneficiaries will have the option to roll over some 529 plan funds tax- and penalty-free into a Roth individual retirement account (IRA)." ...

If you’re unable to contribute to a Roth account directly, there’s good news — you can convert a traditional retirement plan ...

Unlike a traditional IRA, which is funded with tax-deferred contributions, a Roth IRA is funded with contributions made on an after-tax basis or through a 529 rollover (after 2024). Because of ...

You may be able to avoid some immediate taxes by allocating the after-tax funds in your retirement plan to a Roth IRA and the pretax funds to a traditional IRA. You should see a qualified tax ...

If you're looking to set aside money for your children or grandchildren, two great options to consider are 529 Plans and UTMA ...

Roth IRAs are funded with after-tax dollars. Withdrawals from Roth IRAs don't count toward taxable income if you're 59 1/2 and you've had the account for at least five years. Roth IRA funds don't ...