“Well… It Depends!” explores financial questions that rarely have a one-size-fits-all answer.
In this episode, hosts Andrew Baron, CFP®, EA, and Derek Doyle discuss education savings and the different account options available to parents and grandparents looking to help cover the rising cost of education. With the back-to-school season underway, the conversation focuses on 529 plans, Coverdell ESAs, and custodial accounts such as UGMAs and UTMAs.
The conversation takes a closer look at why 529 plans have become such a widely used education savings tool, including their tax advantages, expanded list of qualified education expenses, and flexibility for both college and other educational costs. Andrew and Derek also discuss some of the recent changes affecting 529 plans in 2026 and what families should know when considering these accounts.
They explore the five-year election that allows individuals to accelerate contributions to a 529 plan, as well as annual gifting limits and how parents and grandparents may use 529 plans as part of their education savings and gifting strategies. The episode also covers how 529 funds can be used for K–12 expenses and how recent changes provide additional flexibility when it comes to unused funds.
Andrew and Derek also discuss what happens when a 529 account has money left over, including changing the beneficiary to another eligible family member and the potential to roll a portion of unused funds into a Roth IRA, subject to applicable rules and limitations. These options can provide additional flexibility for families concerned about overfunding an education account.
Finally, the conversation addresses the rising cost of education and why starting to save early can make a meaningful difference. Whether you’re saving for a child, grandchild, or another family member, the episode offers practical perspectives on 529 plans, education savings, and strategies to help prepare for future education expenses.
If you’d like to discuss your specific situation with one of our CFPs®, please email info@jgua.com.
For the full transcript, click HERE
