People Without Kids Now Utilize 529 Accounts

Bloomberg's Sarah Foster explains how 2022 changes to 529 plan rules let people without children use the accounts as a backdoor to fund Roth IRAs. She details the restrictions: five-year holding period, $35,000 lifetime rollover cap, and annual Roth contribution limits. Advisors suggest using this only after maxing other retirement accounts. - 2022 Congress changes expanded 529 plan use beyond college savings for children. - Individuals can open 529s for themselves, children, nieces, or nephews. - Unused 529 funds can be moved to a Roth IRA under certain conditions. - Key limits include a five-year holding period and a $35,000 lifetime cap. - The strategy is recommended only after maxing other retirement accounts.