Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
529 Plans as a Down Payment Gift Strategy for Parents
Lucas and Luna explore how 529 plan funds can be repurposed to help adult children buy their first home, using a specific $35,000 lifetime limit per beneficiary from the SECURE 2.0 Act. They break down the rules: the account must be at least 15 years old, only up to $10,000 per year can be withdrawn, and the beneficiary must be the homebuyer. They walk through a real example of a parent who contributed $200 a month for 18 years, then used $35,000 tax-free for a down payment. They also explain the key pitfalls, including the 15-year account age rule and the per-beneficiary cap. The…
The skinny
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