529 Plans Demystified: save smarter for education
Many parents and grandparents misunderstand how 529 plans work. In this episode, Rich Leimgruber talks with Kris Adrian, National 529 Specialist at JP Morgan, to clear up myths and explain how families can use these plans to fund education in a tax-efficient way.
Our conversation covers how 529s have expanded beyond traditional college savings, what recent rule changes mean, and why every family should understand their options.
Key Highlights:
529 flexibility: Funds cover college, trade school, apprenticeship programs, and can transfer tax-free to siblings, cousins, or even future grandchildren.
New rules that allow up to $35,000 of leftover funds to roll into a Roth IRA under Secure Act 2.0.
FAFSA benefits: Parent-owned 529s count at 5.64% in the formula, while grandparent-owned plans now count at 0%.
Estate strategy: Family Members can gift up to $190,000 (married) in a lump sum using the five-year election, while keeping control of the account.
This episode gives you the facts you need to avoid costly mistakes, take advantage of tax benefits, and plan smarter for your family’s future.
Additional 529 plan Resources:
Filmed and recorded at Studio on the Avenue/LMC Media
Mamaroneck, NY
https://lmcmedia.org/
Produced and Edited by Vekterly
https://www.vekterly.com/
Disclosures: *And the statistics say that a public four year school tuition and fees on average has increased 141% over the last 20 years.
*As per: https://educationdata.org/average-cost-of-college-by-year
**So averaging out 7% per year. And it's estimated that over the next 10 years, public school tuition would increase to about $19,800 a year, up to $38,200 for a private.
**As per: https://www.nysaves.org/home/basics-of-529s/cost-of-college.html?utm_source=chatgpt.com
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