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boilermakerteacher t1_j2avwus wrote

Pump that 529 for the kid, they just changed the rules allowing them to roll unused funds into a Roth IRA when they are older. Could create generational wealth for your kids if properly funded/managed.

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bowoodchintz t1_j2az5ro wrote

Unfortunately it’s limited to a lifetime cap of 35k on rollovers, the money can only be rolled over to a Roth IRA in the name of the beneficiary and the rollover counts toward the annual contribution limit. Not chump change but unlikely to create generational wealth. It’s more like a 529 that offers a touch of extra flexibility.

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boilermakerteacher t1_j2bmwr9 wrote

35k compounding from post college plus potential no debt would definitely be a start.

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_DeadSeaSquirrel t1_j2azzt2 wrote

  • the amount rolled over is subject to Roth IRA contribution limits

  • lifetime limit of 35k

  • beneficiary must be the same for at least 15 years. Changing the beneficiary resets the clock.

  • cannot roll over contributions/earning from the last 5 years

Still a great option but worth noting the limitations. All the more reason to start contributing earlier!

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