Roth IRAs vs. 529 Plans

Back-to-school season is upon us, which serves as a great reminder to consider how you can help your children or grandchildren fund their higher education. With new changes in the last year, there are even more considerations surrounding the two popular savings vehicles: a 529 plan and a Roth IRA.

A 529 plan remains a top choice for saving specifically for education, covering expenses for K-12 or higher education. However, a Roth IRA provides greater flexibility. You can use the funds for education or any other future needs, such as retirement or purchasing a home. Additionally, with the recent SECURE 2.0 updates, you now have the option to roll over unused 529 funds into a Roth IRA, though there are specific limits and rules to consider.

To learn which of these two options is best for you, click here to download “Planning to Save for Higher Education: Roth IRA vs. 529 Plan.”

For professional assistance with your education planning needs, contact our office at 516-294-5287 to schedule a time for a visit.