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Why doesnt the IRS allow transfer of leftover 529 money to Roth accounts when the beneficiary reaches a certain age. It seems like parents are punished for playing it safe and saving more money than what ends up being needed. Is this a far fetched concept. Has it ever been considered?
Why doesnt the IRS allow transfer of leftover 529 money to Roth accounts when the beneficiary reaches a certain age. It seems like parents are punished for playing it safe and saving more money than what ends up being needed. Is this a far fetched concept. Has it ever been considered?
Because the roth has income limits, the 529 can be front loaded and abused to transfer to roth. I could fund a 529 without ever intending to pay for any kids expenses.
Because the roth has income limits, the 529 can be front loaded and abused to transfer to roth. I could fund a 529 without ever intending to pay for any kids expenses.
That makes sense. What is the logic behind income limits for roths, considering they don't have them for traditional?
Because the roth has income limits, the 529 can be front loaded and abused to transfer to roth. I could fund a 529 without ever intending to pay for any kids expenses.
There are still ways to get around the Roth income limits. Right now we're looking at whether or not we should do a backdoor Roth IRA.
I don't know if anything the IRS does has to make any sense.
Understandable but you can't jam 50k into one this year so there are still heavy limitations
Agreed. My main point was about the IRS not having to make any sense, in general.
"Here's this restriction. Now here's this way to get around this restriction, only you'll need to file more paperwork."
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