In this Episode of the Secure Your Retirement Podcast, Radon and Murs discuss the 529 plan as a tax-free investment vehicle and the new ruling around it. A 529 plan is a tax-free compound interest account funded for qualified educational expenses.

Listen in to learn about the stipulations around the new ruling enabling rolling unused 529 money into a Roth IRA for the beneficiary you set it up for. You will also learn the importance of opening and funding a 529 account without going crazy with the money and teaching your kids/grandkids how to open a Roth IRA account as early as they can.

In this episode, find out:

●     The power of the 529 plan as a tax-free compound interest account for qualified educational expenses.

●     The new ruling enables rolling unused 529 money into a Roth IRA for the beneficiary you set it up for.

●     The 15-year hoarding period of the 529 account before rolling it into a Roth IRA.

●     Why the 529 rollover is limited to the annual Roth IRA limit and a lifetime limit.

●     The 529 beneficiary must also be the owner of the Roth IRA and cannot be transferred to a different beneficiary.

●     The earned income amount rule for the 529 beneficiary to be able to roll over the annual Roth IRA limit.

●     Why you should open and fund a 529 account and teach your kids/grandkids how to open a Roth account.

Tweetable Quotes:

●     “With a 529, the rule is, all growth is tax-free provided it is used for qualified educational expenses.”- Murs Tariq

●     “There’s an ability to roll unused 529 money into a Roth IRA for the beneficiary that you set it up for.”- Murs Tariq

Resources:

If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!

To access the course, simply visit POMWealth.net/podcast.