Families and students with an existing Section 529 plan who paid for their education an alternative way are anxious about left over funds. (This also includes those who or simply didn’t pursue a higher education.) The biggest concern is that the money will trapped in the 529 account unless they take a non-qualified withdrawal and assume a penalty.
These concerns have led to hesitating, delaying, or declining to fund 529s to levels needed to pay for the rising costs of education. The SECURE 2.0 Act eliminates this concern by providing families and students with the option to avoid the penalty. This new option could potentially result in families putting more into their section 529 plan.
Tax Benefits For Parents
