529 plan changes coming in 2024

Since we have talked extensively on saving for retirement and college in the past, figured I would share this here.

It looks like the big issue with 529 plans - namely, what happens if the beneficiary has money left over or doesn't go to college - has been addressed. The plan can now be rolled into a Roth IRA. 

It is still subject to the Roth contribution limits and I would assume the income limits as well. Additionally, the account needs to be 15 years old and contributions/earnings in the last 5 years are not allowed to be rolled over without the current taxes and penalties. I would assume that changing the beneficiary would restart the clock, but haven't found anything on that yet. 
 

I don't think this changes much for my wife and I as our personal saving strategy doesn't get past the current 401k/IRA/HSA limits and I don't see why this would be better than those, but I will be making an in depth analysis to make that determination later next month. 

Thanks for that info! We have about $30k in a 529 that we are using very slowly for AK1 because we want to have some left for AK2.

This is fantastic news for us. We have started 529's for each of our kids with absolute uncertainty on what college sould look like by the time they get around to it. We figured there would be good potential for it to be used somehow regardless, but this is best-case scenario.

Woah that's cool.