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Personal Finance (Not Investing) • 529 to Roth IRA Conversion before college?

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There really aren't any realistic scenarios in which one should put money into a 529 that they don't highly anticipate spending on qualified educational expenses. The $35k Roth rollover is basically just a safety valve for over contributions, and for the reasons stated above is not a loophole for bonus Roth contributions and never should be a reason to intentionally contribute more to a 529. Perhaps it can at least be the way to deal with your kids' existing 529 balances, though, when they eventually do have earned income in the future?
Yeah, I doubt they'll earn much in high school so will just plan on depleting the 529s on qualified educational expenses during my oldest's freshman year. My guess is we'll have $200k+ in college expenses but the 529 benefits just aren't there for me to deal with the strings and/or penalties.

Statistics: Posted by ThankYouJack — Sat Sep 28, 2024 8:17 pm — Replies 4 — Views 256



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