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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

May/June 2024

Leftover 529 Plan Funds

Student writing college or university application. Apply to school. Admission or grant. Teacher and computer. Principal or headmaster working in office. Politician, minister or secretary of education.

Congratulations, your youngest child has graduated college, and there’s money left in their 529 college savings plan.* Now, the question is what to do with that money. If you want to liquidate the account, you have several tax-advantaged choices.


You can make tax-free 529 plan distributions to pay student loan principal and interest of up to $10,000 a year for the recent grad and each of their siblings, including stepbrothers and stepsisters.


Starting in 2024, 529 education accounts can be rolled over tax-free to a Roth IRA for the 529 plan beneficiary. There’s a $35,000 cap. Rollover amounts can’t exceed the annual contribution limit for Roth IRAs ($7,000 in 2024). As the owner of the Roth IRA, your graduate must have earned income at least equal to the rollover amount. The 529 plan must have been open for over 15 years before you can do a 529-to-Roth IRA transfer.


Now through 2025, money may be rolled over from a 529 plan into an Achieving a Better Life Experience (ABLE) account or a qualified family member with disabilities to help save and pay for disability-related expenses. The current annual contribution limit is $18,000.


Discuss 529 plans with your financial and tax professionals.


*Certain requirements may apply. Before investing, read the program offering statement and consider the investment objectives, risks, charges, and expenses. These plans are not guaranteed by any state or federal agency, credit union or bank and are subject to investment risk and may lose principal.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
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