01/01/24 - LA 529 START owners can roll balance to a ROTH for beneficiary

I'm not sure who this might help outside of parents who overfunded their kids' 529s. I certainly don't think it's worth developing a 15-20 year plan around it. But it would be useful for kids out of college (or who flat-out never go) to have a few years of Roth IRA contributions locked up at the start of their working years.

I'm planning to use it in a few years. Funded 529s but all or most of college expenses now going to be covered through my transferred GI Bill. It will enable them to max Roth first few years of their careers and put their own $ in 401k or save for house down payment.

I assume the Roth rollover will have a 5 year rule attached to each of the rollovers too?

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I would have to look into it on the website, but I think my FA told me ten years ago is that you can also assign it to a new beneficiary (your grandkids) if there is anything left over.

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I looked it up earlier, so it wasn't any effort to find the list again:

The new beneficiary must be a "Member of the Family" of the current beneficiary in order to prevent a non-qualified disbursement. A "Member of Family" must be related to the current beneficiary as one of the following:

Father or mother, or an ancestor of either
Stepfather or stepmother, but not their ancestors
Brother or sister of the father or mother, but not of a step-parent
Brother, sister, stepbrother or stepsister
Son or daughter, or descendant of either father-in-law or mother-in-law
Stepson or stepdaughter
Son or daughter of a brother or sister, but not of a step-sibling
Spouse of the designated beneficiary or any of the above individuals
Brother-in-law, sister-in-law, son-in-law, daughter-in-law
First Cousin

i wasn't considering the START program, but this makes more sense now.

“Married couples filing jointly may deduct deposits to START accounts from Louisiana State Taxable Income up to a maximum of $4,800 per year, per beneficiary, and any unused portion may be carried forward to subsequent tax years.“

LINK

Keep in mind, the earning enhancement (whatever it may be) is not eligible to rollover.

That’s pretty cool. I was aware that you could roll it over to your grandkids for their college which has always been my plan but maybe I’ll go this route. Wife and I have been maxing out for our three kids (8,6,3) pretty much since they were born. On pace to have ~$100k per kid in there when they start school so I’ve always been concerned with overfunding