Should you worry about overfunding your 529 plan?

529 college savings plans are powerful tools to help pay for the mounting costs of an education

529 college savings plans  are powerful tools to help pay for the mounting costs of an education. Why are some people hesitant to use them?

One common concern is oversaving. You can use 529 funds to cover only  qualified education expenses  without incurring a tax penalty, but it can be hard to pinpoint how much money you actually need.

Many parents open 529s for their children when they are born; they have no way of knowing whether their kids will earn a scholarship or even go to college at all. Fortunately, parents of multiple children can change the beneficiary of a 529 plan.

But what do you do if you still have money left over after covering education expenses?

Thanks to  Secure 2.0, college savers won’t have to worry about overfunding their 529s. Starting this year, you can now  roll over unused 529 funds to a Roth IRA. But don’t think the 529 rollover is a loophole to save extra for retirement; there are rules that limit the conversions.

Here’s what you should consider when converting your 529 funds to a Roth IRA.

The Roth IRA receiving the funds must be in the name of the 529 plan beneficiary.

The 529 plan must be open for at least 15 years.

You cannot convert 529 contributions made within the past five years (or the earnings on those contributions).

The 529 funds you roll over count toward your IRA annual co