As a parent to a toddler, my world is filled with chaos. As most parents would probably agree, the toddler stage is an interesting one. One minute could be great and the next, you’re on the verge of a mental breakdown over something as small as a tortilla. Yes, my son had an epic meltdown because his tortilla folded in half and tore. With the uncertainty of the day to day that comes with parenting a toddler, one thing that is certain is my goal to start saving for his education.
I have a 529 account for my son, but it has occurred to me that there is the possibility that college might not be for him, which made me hesitant to start contributing. I started to worry about what would happen to all those funds if we didn’t use them for his K-12 education or beyond. What if he didn’t have any siblings to transfer those funds to? Until about four months ago when I found out I’d be welcoming another child into our family, those thoughts were continuously on my mind, even while dealing with Tortilla Gate.
Now, I don’t worry so much about over funding my current 529 because I can underfund a second 529 knowing that any unused money can be transferred to it. Furthermore, the recent laws put in place by the Secure 2.0 Act, gives parents the ability to convert their 529 to a Roth IRA (for the beneficiary of the 529). Of course, it comes with some caveats.
As I bring another child into my already chaotic world, I can sleep better at night (well, at least until baby gets here) knowing I have access to a great team to help me with the financial decisions of planning for two kids.