Sean Pyles

200 000 on college they can only roll 35 000 out of the 300 000 and then you better hope you have another beneficiary lined up because if you take money out of a 529 for a non-qualified expense you're going to be paying a 10 penalty you're going to be paying income tax and you can avoid that by putting money into a taxable brokerage account or just

an IRA, your 401k, there may just be a better vehicle for all of this money than the 529.

I love what the parent is doing.

They're looking out for their kid and also for themselves to avoid debt in the future.

It just seems like maybe not the wisest decision.

Yeah.

Well, let's see what the Redditors had to say about this.

I saw one comment that stood out to me for just being plain wrong.

Someone said,

Also, the qualified expense rules are already favorable and will get softer over time.

So there's just a lot of erroneous information here.

Yeah, it's $35,000 that you can put in.

And that number is not tied to inflation.

It's not expected to go up.

There's nothing saying that's going to happen.

And there's also nothing to indicate that qualified expense rules are going to get softer over time.

This is just made up.

Jargon.

They'd have to save maybe a lot more than $500,000 depending on how many kids they have.

But yeah, they got to make it worth it, right?