Like what you see? Follow us so you don't miss out on Money Saving tips & tricks to help you Crush Debt & grow your Savings. Find us on IG, TikTok, Youtube, & our website scrunchyfi.com....(read more)
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Are you looking for the best way to set your kid up for financial success? Well, thanks to a viral TikTok video, we have a new option to consider - the 529 turned Roth IRA. First, let's break down what each of these investments are. A 529 plan is a tax-advantaged savings plan specifically designed to pay for future education expenses. A Roth IRA, on the other hand, is an individual retirement account that allows you to save for retirement while also providing tax-free growth and withdrawals. The TikTok video, posted by user @moneywithmaggie, suggests that parents can maximize the benefits of both by initially investing in a 529 plan and then rolling it over into a Roth IRA once their child has completed their education. So, what are the advantages of this strategy? One of the biggest benefits is flexibility. With a 529 plan, the money must be used for qualified education expenses, or you'll face penalties and taxes. However, by using a Roth IRA, there are no restrictions on how the money is used - meaning your child can use it for anything from starting a business to buying a home. Additionally, a Roth IRA can provide even greater long-term financial benefits than a 529 plan. Roth IRAs have no required minimum distributions, meaning the account can continue to grow tax-free for the rest of the account holder's life. This can be particularly beneficial for young investors who have many years of growth potential ahead of them. It's important to note that there are some limitations and considerations to keep in mind when rolling over a 529 plan into a Roth IRA. For example, there are income limitations to how much you can contribute to a Roth IRA, and you'll need to pay taxes on the earnings you're rolling over from the 529 plan. So, is the 529 turned Roth IRA the best investing option for kids? It may not be the right choice for everyone, but it's certainly worth considering. With the potential for greater long-term benefits and flexibility in how the money is used, it's a strategy that may help set your child up for financial success. https://inflationprotection.org/tiktok-from-529-to-roth-ira-best-investment-options-for-kids/?feed_id=90000&_unique_id=64429e077b3b7 #Inflation #Retirement #GoldIRA #Wealth #Investing #budgeting #crushingdebt #earnmoney #finacialfreedom #FinancialIndependence #personalfinance #sahm #SaveMoney #scrunchymama #trackingexpenses #RothIRA #budgeting #crushingdebt #earnmoney #finacialfreedom #FinancialIndependence #personalfinance #sahm #SaveMoney #scrunchymama #trackingexpenses
Comments
Post a Comment