Frerichs' Plan to Allow Leftover College Savings Funds to Be Used For Retirement Signed Into Law
Parents who don’t use all the money in their Illinois 529 College Savings Accounts (Bright Start and Bright Directions) are now able to roll over the funds into a Roth IRA under Illinois Treasurer Michael Frerichs’ plan that was signed into law . “This will give parents another option when deciding what to do with the money they’ve saved for their children if they don’t use all of it,” said Treasurer Frerichs, who thanked Gov. JB Pritzker for signing the legislation and State Sen. Steve Stadelman and State Rep. Diane Blair-Sherlock for sponsoring it. “A common question we get from parents is what they can do with their Illinois 529 money if their child doesn’t go to college or gets a scholarship, and there is money left over in the account, and we have good news to share with them.” The option is possible because Congress approved a measure in December 2022 changing Section 529 of the Internal Revenue Code to authorize tax-
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