Can 529 move funds between beneficiaries. How much we should put per beneficiary (ideally) . If it’s unused can it be withdrawn or invested in different category?
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Great question!
Parents can transfer 529 plan savings from one child to another without tax consequences by doing a plan-to-plan rollover or a beneficiary change.
If you find yourself in situation with unused 529 funds, you do have options. If you or the account's beneficiary decide to use the account funds for nonqualified expenses, you may be subject to income tax and a 10% federal tax penalty on any earnings associated with the distribution. That's where a rollover to a Roth IRA could make sense.
But, there are rules you must meet.
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