Today we reached a significant milestone in our 529 savings for kid’s college education. We started saving in 529 right after the kid was born, and we always tried to maximize the amount early on to get state tax breaks. Today we hit a milestone that we had been planning for a while. At this point we have two choices - continue to save the minimum required to get the VA tax break, or just repurpose that money into another saving account. Now that new rules regarding 529 are active (you can rollover unused 529 into a IRA, max 35k if the account has been active for 15 years), I wonder what makes sense.
No, dont want to send an impression we have saved off enough money to fund her entire education. Nope - I still expect her to take on a significant loan for her education, but the Indian dad in me wants her to take on as little as she can. I didnt have to think about education debt while studying, and I am hoping that while I cannot do zero, I can lessen the education debt she takes on.