This New 529 Rule Could Pave Your Child's Way to a Comfortable Retirement
529 accounts provide families with a tax-advantaged way to save for higher education, but they've always had one big flaw. If you'd like to use the money for something other than higher education, you'll pay income tax on it, plus a 10% penalty. This has discouraged some people from taking full advantage of these accounts, but that could soon change.
The passage of the SECURE 2.0 Act at the end of 2022 made several key rule changes to retirement and investment accounts, including 529 accounts. And there's one that could make these accounts a lot more appealing.
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Source Fool.com
