State Treasurer wants unspent 529 funds to start a Roth IRA

Posted on March 26, 2024
Illinois Treasurer Michael Frerichs. (WJBC File Photo)

By Dave Dahl

SPRINGFIELD – Let’s go from college savings to retirement savings.

State Treasurer Mike Frerichs wants college grads to be able to use unspent 529 funds to start a Roth IRA.

“Unfortunately, state law only allows tax deductions on contributions to 529 (plans) for certain approved expenses,” said Frerichs. “That’s why we are working to change state law. We want more people saving to be financially secure, their kids getting a better education without being saddled with so much debt, and we also want families to be saving for retirement.”

Lawmakers are already working on it. A Chicago news conference Tuesday also featured an Illinois State Board of Education employee – and new mom – excited about her child’s future.

Dave Dah can be reached at [email protected].

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