We use the UTAH 529 and they recently updated their account information to provide instructions and a form to mail if one chooses to move monies from the 529 plan to a Roth IRA of the beneficiary. This is part of the Secure Act 2.0 revisions which have been discussed here previous.
This is strictly a FYI for those who may have this circumstance; and should check their 529 plan for updates to this process.
Remain curious,
Catch
Comments
https://ybbpersonalfinance.proboards.com/post/877/thread
Check your State 529 rules if these rollover withdrawals would be qualified (good) or nonqualified (bad) & whether state clawbacks would apply. IL 529 just changed rules to make them qualified withdrawals. If this change is pending in your State, waiting a few months may save you lot of headaches and money.
P.S.: I do not own Series E. I only own IBonds in trying to anticipate inflation and It has not been a great investment. Stocks are probably a better cure if one were to anticipate inflation
https://treasurydirect.gov/savings-bonds/tax-information-ee-i-bonds/using-bonds-for-higher-education/
We bought some DECADES ago, and when these "new" rules came along, our bonds didn't qualify for one reason or another. By that time, we had stopped buying them, but just held them. Now, all have matured naturally (30 years) and we are Savings Bond free except for the I-Bonds we bought in 2021-22 during the mad rush when inflation was very high.
But the rules for using Savings Bonds for education could certainly be simplified.
One of our kid is thinking about graduate school or others, so the remaining fund will be used up (perhaps we need to invest to help out). As parents we are thankful our kids will not incur debt with student loans when they graduate college.
We will use up one of the I bond for qualified college expense later this year. I bonds have too many restrictions that we now use treasuries instead.