529 Plan
Personal FinanceDefinition
State-sponsored education savings account. Contributions grow tax-free and qualified withdrawals (tuition, room & board, books, K-12 up to $10K/year) are also tax-free.
Most states offer income-tax deduction for contributions to in-state plans. SECURE 2.0 (2024+) allows up to $35K of unused 529 to be rolled to a Roth IRA after 15 years — eliminating one of the biggest objections (overfunding risk).
Most states offer income-tax deduction for contributions to in-state plans. SECURE 2.0 (2024+) allows up to $35K of unused 529 to be rolled to a Roth IRA after 15 years — eliminating one of the biggest objections (overfunding risk).