529 Account #529plan #investingforbeginners #investingtips101 College Savings

For as long as 529s have been around, they have offered a state tax deduction for contributions for most states and could be used for higher educational expenses (not just college).

529s became even more valuable this year when Biden signed Secure Act 2.0 which allowed 529 assets to be rolled over to a Roth IRA for the kid (up to $7k per year for 5 years or $35k max) after 15 years of having the account. If you know the tax code, you also know that a Roth IRA has some unique benefits as well such as the ability to use Roth IRA money for your first primary home purchase after 5 years.

Combining those two vehicles is the ultimate wealth transfer strategy that I plan to use for my future kids (they already have a fully funded 529 and they aren’t even a thought yet).

🎥 To help break down this strategy even more, click the link in my bio to watch my entire YouTube video on investing for your kids.

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