Overview
This course provides a thorough examination of qualified tuition programs (Section 529 plans), focusing on their tax treatment, planning applications, and recent legislative changes. Participants will learn how 529 plans operate, what qualifies as education expenses, and how contributions, distributions, and beneficiary changes are treated under federal law. The course explores practical planning strategies, including 529-to-Roth IRA rollovers, multigenerational “dynasty” 529 planning, grandparent-owned account considerations, and interplay with financial aid. It also addresses state-level variations, compliance issues, and common pitfalls.
Using real-world scenarios, the course evaluates when 529 plans are advantageous, the limitations families may encounter, and alternative approaches to education and long-term savings. Participants will gain a clear understanding of tax benefits, penalties, strategic funding approaches, and planning opportunities for high-net-worth families as well as typical households.
Major Topics:
- 529 plan structure, requirements, and tax treatment
- Qualified education expenses, K–12 allowances, and student loan limits
- Contribution rules, gift-tax interactions, and the five-year election
- Distribution rules, penalties, and coordination with financial aid
- State tax considerations and recapture issues
- SECURE Act 2.0 529-to-Roth IRA rollover provisions
- Grandparent-owned 529 plans and FAFSA implications
- Multigenerational and dynasty 529 planning strategies
- Common challenges, risks, and practical decision frameworks
Learning Objectives
- Evaluate when 529 plans fit into an education or wealth-planning strategy
- Apply current rules to client-specific scenarios