People Without Kids Are Hacking 529 Accounts for a Roth Backdoor

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF Congress in 2022 tweaked the rules governing 529 plans, letting holders roll up to $35,000 in unused funds into a Roth IRA. As a result, savers are pouring money into the accounts after hitting the annual limits for contributing to their retirement plans — treating the 529 as a backdoor for funding a Roth IRA. One in 4 parents surveyed in Fidelity’s 2026 College Savings Indicator Study said they are now more likely to open a 529 account given the rollover and alternative uses. Bloomberg News Personal Finance Reporter Sarah Foster discusses. See omnystudio.com/listener for privacy information.