529 education savings plans are valuable tools for funding education costs, but concerns about oversaving and uncertainty about future expenses can deter some from using them. Parents can open 529s at birth, but what happens if there’s money left over after education expenses?

Thanks to the Secure 2.0 Act, you can now roll over unused 529 funds to a Roth IRA, but there are rules and limits to follow. The Roth IRA must be in the beneficiary’s name, the 529 plan must be open for 15 years, and contributions from the past five years can’t be converted.

Converting 529 funds to a Roth IRA has specific rules, including a lifetime maximum of $35,000 that can be rolled over. Contributions must be made directly to the Roth IRA and are subject to annual contribution limits. The beneficiary must have eligible earnings for the conversion to occur.

529 rollovers into ABLE accounts are beneficial for families with a child with disabilities, allowing them to save for the child’s needs while maintaining eligibility for government assistance. The rollover has tax advantages and a higher contribution limit. ABLE accounts cover a broader range of qualified expenses.

The ABLE account rollover offers flexibility for families if a 529 beneficiary develops a disability, expanding the use of funds for various needs. It provides a safety net for unanticipated circumstances. Consider separate funding for retirement and utilize 529 plans for education as intended.

Read more at Yahoo Finance: Should you worry about overfunding your 529 plan?