Tue, 22 Sep 2026 9:00 AM - 3:30 PM

Human Resources

Worried About "Overfunding" College?

Meet the 529-to-Roth IRA Option. One of the most common questions employees ask about 529 plans is: “What happens if my child doesn’t use all the money, gets a scholarship, or chooses a different career path?” Thanks to SECURE 2.0, unused 529 funds no longer risk being trapped or penalized. You can now roll unused 529 savings directly into a tax-free Roth IRA owned by your child, turning leftover college funds into a generational retirement nest egg.

Key SECURE 2.0 Rollover Rules:

  • $35,000 Lifetime Cap: Roll over up to $35,000 per beneficiary without federal taxes or withdrawal penalties.
  • Annual Limits: Rollovers are subject to annual IRA limits ($7,500 in 2026) and count toward the beneficiary’s annual contribution limit.
  • 15-Year Rule: The 529 account must have been maintained for at least 15 years — the earlier you open an account through JMU payroll deduction, the sooner that clock begins.
  • No Income Phaseouts: Beneficiaries can receive rollover contributions even if their personal earnings would otherwise disqualify them under standard Roth IRA high-income limits.

More Flexible Ways Unused Funds Can Be Used:

  • Transfer to Family: Change the designated beneficiary at any time to a sibling, parent, cousin, or even yourself without tax penalties.
  • Pay Down Student Debt: Distribute up to $10,000 (lifetime maximum) per student toward qualified student loan repayment.
  • State Tax Benefit: Virginia residents can deduct up to $4,000 per year per account on their Virginia state income tax return, with unlimited carryforward.

LET’S CONNECT!
Virtual 1-on-1 Consultations: FIRM Dedicated JMU Day — whether you need to open a 529 or ABLE account for a $1-for-$1 state tax deduction and/or to start the 15-year clock, set up payroll deduction, evaluate the College Target Date funds, or process a Roth IRA rollover request, schedule a private session with our team.

Tuesday, September 22, 2026 | 9:00 AM – 3:15 PM EST
20-minute private virtual appointment
CollegeAmerica® 529 college savings plan with JMU payroll deduction through American Funds & FIRM

Sign up HERE!

Get started today! Apply now: https://firmadvisor.com/site/jmu-529-plan-application/

Need more information? Visit: https://firmadvisor.com/site/james-madison-university/

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