Greetings!,

Do you think much about college funding? Since today is May 29, or numerically 5.29, the concept is front and center for us (529 is the common term for education savings plans).

You may or may not have heard the term. And if you have, you may only associate the account with saving for college for a child or grandchild. However, in recent years, these accounts have gone through an update, so to speak.

The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, and the SECURE Act 2.0, which began in 2024 — has provided significant changes to education planning, including 529 plans. These changes also extend beyond the idea of just saving for college.

Key updates and rules include:

• Increased K-12 Limits: The annual withdrawal cap for qualified K–12 expenses has doubled from $10,000 to $20,000 per student.
• Expanded K-12 Expenses: Funds can now be used for books, tutoring, standardized testing, dual-enrollment classes, and educational therapies.
• Career and Trade Programs: Accounts can now pay for apprenticeships, trade schools, professional certifications (e.g., CPA, CFP), and continuing education.
• Rollovers to Roth IRAs: Unused 529 funds can be rolled over to the beneficiary’s Roth IRA, subject to lifetime limits and plan requirements.
• ABLE Account Transfers: Tax-free rollovers from 529 plans to ABLE accounts for disabled individuals are now permanently allowed.

There are also ways to use money you have set aside on a tax advantaged basis even if your student doesn't go to college, or use all the funds. In our office we have also been exploring the ownership of 529 accounts from parents to grandparents and how a simple change such as this may impact financial aid programs.

As with any type of investment or program, what is right for someone else may not be right for you. These programs should be designed to meet your goals and needs and not implemented as a one-size-fits-all solution.

Other considerations also include how much funding you want to provide, what type of school you want to fund for, and any tax implications that may apply.

If you would like to know more, have an estimate of what future college costs may be in general or for a particular school, or explore how setting up an account(s) for your child or grandchild would work, please give us a call.

As always, thanks for reading.



Bernie & Chad