Summary: Families often worry that saving in a 529 account could lead to penalties or taxes if their child does not attend college or has leftover funds. Senate Bill 657 eliminates that concern by aligning state law with federal law to allow families to roll over unused 529 savings into Roth IRAs for the benefit of the student, and it would be tax- and penalty-free. By providing this flexibility, parents can confidently invest in their child’s future without fear of losing their hard-earned savings.
The reassurance of knowing that every dollar saved can be used in a meaningful way encourages more parents to open 529 accounts and contribute more. My proposed change would allow individuals and families to start investing towards their children’s retirement.
Click here to read the bill language.
Video: Senator in the Senate Revenue and Taxation Committee (5/14/2025)