college tuition

SECURE 2.0 Allows Rollovers of 529 Funds to Roth IRAs

We’re getting a lot of questions about the SECURE 2.0 provision allowing tax-free rollovers from 529 plans to Roth IRAs. Although this new rollover opportunity sounds exciting, there are a number of restrictions that may limit its appeal. Section 529 plans offer a great opportunity to pay for college, K-12 tuition and student loan repayments. Nearly every state offers at least one plan. The most popular type of 529 plans are college savings plans, in which you make after-tax contributions that are invested in mutual funds or ETFs offered under the plan.

Unwanted RMDs and Using IRAs for Higher Education: Today’s Slott Report Mailbag

Question: I had taken an RMD in January 2020 from an IRA account. Then in July, I returned a portion back to the same IRA. Now I want to return another portion back to the IRA. Are multiple transactions for reversal allowed? Thanks for your quick reply in advance. Piyush Answer: Hi Piyush, You are allowed to pay back an IRA distribution with multiple partial rollovers.

Avoid This Trap When Using a Roth IRA to Pay For College

Paying for college is challenging enough. Paying for college while saving for retirement can be nearly impossible. There is only so much money to go around. Roth IRAs can be a great way to bridge the gap between paying for college and saving for your own retirement. But be careful to avoid this trap that could cost you in lost financial aid dollars.

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