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Unlocking Financial Flexibility with Young Global Wealth Strategies

The Secure Act 2.0 and Your 529 Plan

In the ever-evolving landscape of financial planning, it's crucial to adapt and leverage new opportunities. Enter Young Global Wealth Strategies, a firm dedicated to guiding clients through strategic financial decisions with a personalized touch. Led by John Young, a seasoned professional with a history of athletic discipline and a passion for helping families secure their financial futures, the firm takes a unique approach to wealth management. Drawing on his background as a Division 1 swimmer and coach, John Young brings a unique perspective to financial planning. Just as athletes strive for efficiency and excellence in their endeavors, Young Global Wealth Strategies is committed to maximizing value for their clients.

At Young Global Wealth Strategies, the focus is not just on managing portfolios, but on understanding each client's unique dynamics and evolving needs. Central to the firm's philosophy is the belief that clients should have ownership of their financial plans. Through personalized consulting and a team approach, clients are empowered to make informed decisions about their investments. 

So, what sets Young Global Wealth Strategies apart? It's their commitment to understanding clients' needs and providing tailored solutions. As John Young explains, "We may be a good fit to serve your needs if you prefer a personal team that puts your interests ahead of its own... if you need a sophisticated, customized program geared toward your specific needs... if you want a 'service center' that can coordinate your complex affairs."

Now, let's delve into the recent legislative update that's changing the game for families saving for higher education: the Secure Act 2.0. This update introduces a new perk for 529 plan holders, allowing them to transfer unused funds into a Roth IRA retirement plan tax-free and penalty-free, starting in 2024. However, navigating the nuances of this opportunity requires careful consideration. The 15-year requirement for a 529 plan's existence, for instance, may impact the timing of rollovers. John advises starting early, explaining that if the child is older when you start, it would take longer before you are eligible for rollover. Also, in deciding to convert 529 funds into a Roth IRA, families must think about their overall financial goals, considering whether the child is fully done with any further education. 

John also cautions families to consider potential drawbacks, such as state tax implications, before deciding to transfer funds, acknowledging that you might have to pay taxes and a penalty if no legislation is passed to update tax rules at the state level. 

When it comes to Roth IRA contributions, income limits may come into play. However, John highlights the potential benefit for high-income earners: "If you are a high-income earner and cannot make Roth contributions, this gives you a way to make those contributions." As for accessing funds for non-retirement expenses, John notes, "If the funds are in a Roth for five years, one could pull the principal out tax-free."

Ultimately, seeking professional financial advice is paramount in navigating these decisions and Young Global Wealth Strategies emphasizes the importance of a comprehensive financial plan tailored to each client's unique situation. The Secure Act 2.0 presents a valuable opportunity for families to maximize their financial flexibility. With the guidance of Young Global Wealth Strategies and the expertise of John Young, clients can confidently navigate these changes and secure their financial futures within the ever-changing landscape of financial planning. John Young’s commitment to personalized service, integrity and expertise empowers his clients to navigate financial opportunities with confidence and clarity.

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