529 Plans Top $500 Billion in 17 Million Accounts as Uses Expand Beyond College
Updated
Updated · Fox Business · May 29
529 Plans Top $500 Billion in 17 Million Accounts as Uses Expand Beyond College
2 articles · Updated · Fox Business · May 29
$500 billion in assets now sits in 17 million 529 accounts, underscoring how widely the tax-advantaged education savings plans have spread over 30 years.
Recent rule changes have broadened eligible uses beyond four-year colleges to include up to $20,000 a year for K-12 private tuition, plus registered apprenticeships and credentialing programs.
$35,000 of unused funds can also be rolled into a beneficiary's Roth IRA if the account has been open at least 18 years, while savers may switch beneficiaries or keep funds invested with no required distribution.
$19,000 per year can be contributed per beneficiary without triggering gift tax, and families can front-load five years of gifts at once—up to $190,000 per beneficiary in the example cited.
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