Most Common 529 Questions

Freelance Finance Fix

Our prior episode, “529 Plans are for More than Education” highlighted that the traditional 529 College Savings plans are set for big changes. While 529 accounts used to be where parents and grandparents invested money to fund the next generation's higher-level education costs like tuition, the Secure Act 2.0 includes provisions that if unused, this money can be rolled into a beneficiary’s Roth IRA. There are restrictions and rules that must be followed, but listen to the Freelance Finance Fix Episode 13 for all of the details.

In this episode, Alex addresses 8 of the most common 529 plan questions and answers and shares why 529 accounts are becoming more popular. If you’re wondering about 529 plan beneficiary rules, age limits, how 529 savings affects financial aid, and whether you must use your state’s 529 plan, you’re in the right place!

Among other things, this 529 Account Q&A session covers:

• Flexible beneficiary options and 529 account ownership

• Option for multiple 529 accounts for the same beneficiary

• Investment options, income tax cap, and improvements of 529 accounts

Must-listen moments:

[00:03:04] The 529 account is the property of the account owner, not the beneficiary.

[00:05:57] A single beneficiary can have multiple 529 accounts opened in their name, and each of these plans can potentially have a different account owner.

[00:13:03] If you do have a 529 account, I encourage you to take a peek at the investments inside of them, particularly in light of a very volatile market last year, and make sure the investments are in line with the beneficiary's goals and time of when they may be needing to use the funds.

For more detail on financial topics curated just for freelancers, visit www.freelancefinancefix.com

You’re also invited to connect with me on LinkedIn at https://www.linkedin.com/in/alexmlynch/