What is a 529 college savings account?

A 529 college savings account can be a strategic, tax-advantaged way to save for college — and these accounts have only gotten more appealing and flexible in recent years. A 529 is a tax-advantaged college savings account that can be used to pay for a beneficiary’s qualified education expenses, such as tuition or textbooks.

Can I enroll in a 529 plan in any state?

While you can enroll in a 529 plan in any state, you're limited to the investment choices available in that plan, regardless of risk, growth potential, fees and other costs. In addition, you'll encounter a nonqualified withdrawal penalty fee (plus income tax on earnings) if you ever want to withdraw your money for any ineligible expenses.

Can a 529 account be rolled into a Roth IRA?

In December 2022, the Secure Act 2.0 added additional flexibility beyond that: Once a 529 account has been open for 15 years, beneficiaries can roll up to $35,000 from the account into their Roth IRA SECURE 2.0 Act of 2022. Expanding Coverage and Increasing Retirement Savings. Accessed Mar 19, 2024.