What To Do With An Overfunded 529 Account

[@DrBilly90210]

I was just about to transfer my ownership of my daughter's (beneficiary) 529 to her (she'd be both owner and benficiary) after she graduated, and then found out about Roth rollovers. Haven't been able to get a clear answer as to whether a person who's both owner and benficiary can do a 529/Roth rollover. So keeping things as is for now. Will probably do first rollover in 2024 and we'll see how it goes. I understand, and agree with, your views on paying for college with a combination of 529 and current cash flow funds (7:15). However, I'd wager I speak for a not insignificant number of people who view(ed) the 529 plans they set up for their children as a form of insurance. Covering $20K/year can be done when working full time. If you're dead, or perhaps even worse from a financial POV, severely disabled, coughing up $20K/year for your spawn's education isn't nearly as easy. An overfunded 529 is one less thing to worry about if your finances go sideways.

[@baxt1412]

Can you change the beneficiary and contribute the Roth IRA maximum yo multiple beneficiaries in the same calendar year? Say there is 35k in there. Can you on Jan 1 contribute max Roth IRA to child 1, once that clears, change beneficiary and once that clears contribute max to child 2’s Roth IRA and repeat ad nauseum as long as no individual gets more than contribution max or their qualified earned income for the year? Or does SECURE only allow for one Roth rollover per year per account?

[@Random-ld6wg]

i saved as if my son was going to law or medical school and he ends up going to a cheap school. is there a way to have more than one beneficiary simultaneously in one 529 and not sequentially or divide it in the future( for potential grandkids that will end up being in college at the same time). tuition is covered by our state so for the first time in 2024, i decided to pull what my son received from the state scholarship from the 529 and add it on to his utma. i will pay marginal tax on it but should not be subject to 10% penalty. i also told him he will get to have 35K contributed to his roth over the next several years. by the time he is 30 or at least sure of not getting more schooling done, i will probably cash out most of it and leave a still large enough amount in case he changes his mind for school and for the remainder to compound for a future grandchild. will have to work around irmaa if that is the case.

[@thewhitecoatinvestor]

A 529 can have only one beneficiary at a time, but there are a few other things you can do with an overfunded 529 as stated in this video. Congratulations on fully funding your son's education, and potentially your grandchildren's as well!

[@Random-ld6wg]

@thewhitecoatinvestor only had one child to save for so not too difficult without affecting other financial goals. is it easy to change ownership as you mentioned for your nieces and nephews? any tax implications?