529 Plans: Everything You Need to Know

A 529 college savings plan offers tax-free growth and withdrawals for qualified education expenses, including college and K-12 tuition up to $20,000 annually. States often provide tax benefits for contributions to their plans. SECURE 2.0 allows unused 529 funds to roll into a Roth IRA after 15 years, with limits on annual and lifetime rollovers, reducing overfunding risks. Contributions up to $19,000 per beneficiary are gift tax-exempt.