529 College Savings Plan and SECURE 2.0

A 529 college savings plan is a state-sponsored investment plan that enables you to save money for a beneficiary and pay for education expenses. Owners can withdraw funds tax-free to cover nearly any type of college expense.

We are talking about 529s today because the new SECURE 2.0 Act now allows these tax-advantaged accounts to convert to a Roth IRA. Chris Wagner, a wealth advisor at Vector, joins Jason to discuss the changes and share scenarios of when account owners would opt to make the rollover.

We also get into tax-advantaged savings accounts for those with a qualifying disability. ABLE accounts were created by the Achieving a Better Life Experience Act of 2014 and have since been updated in the SECURE 2.0 Act. The previous law capped the age at which a qualifying disability had to occur to 26. The new law ups the age to 46. This change is significant as qualifying mental health events that may have gone undiagnosed until later in life may now be counted.

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