Here’s what’s new and what you might not realize:

Bigger Gifts, Bigger Impact:
Special rules allow you to front-load up to five times the annual gift tax exclusion into a 529 plan. For 2025, that means you could contribute up to $19,000 × 5 = $95,000 per beneficiary (or $190,000 for a married couple) without using up your lifetime gift tax exemption. It’s a meaningful way to jumpstart a child’s or grandchild’s educational fund.

Flexibility for the Whole Family:
Owners of 529 accounts can change beneficiaries among certain family members, including siblings, cousins, or even themselves. This means you can build a family pool of funds that stays useful across generations of students—whether for college, trade school, or other educational programs.

New Roth IRA Rollover Option:
529 plan owners can roll over up to $35,000 into a beneficiary’s Roth IRA, provided the account has been open for at least 15 years. This change adds a new layer of flexibility and helps beneficiaries kick-start their retirement savings.
Back-to-school is the perfect time to review whether your 529 plan is working as hard for your family as it could be. Have questions about making the most of your 529 or how it fits into your larger estate and financial planning? Reach out to Compass Law — we’re here to help you plan smarter for your family’s future.