Ref: SECURE Act 2.0 (2022)

Example: Your child, Sam, is the beneficiary of a 529 education savings plan with a balance of $30,000 and he’s finished with college. What to do with the remaining funds?

NEW: Under new law, you can roll the 529 funds into a Roth IRA in Sam’s name subject to the annual maximum (currently $7,000). THESE ROLLOVERS ARE TAX AND PENALTY FREE. In this example, you’d be done with the rollover in five years.

ALTERNATIVELY: You may want to consider waiting… and change the beneficiary to your grandchild (yet to be born). By the time he/she goes to college, the account should grow substantially.