It’s 529 Day: Are You Using Your 529 Plan the Right Way?
Happy 529 Day!
In this special 529 Day re-release of the Doctor’s Eyes Only® podcast, Vestia Partner and CEO Lauren Oschman revisits one of the most common questions physician families ask: Are you using your 529 plan the right way?
Originally recorded in 2024, this episode remains one of our most popular conversations on college savings and education planning for physicians. Before the episode begins, Lauren shares several important updates reflecting legislative changes that have occurred since the original recording. These updates include an increase in the annual gift tax exclusion amount from $17,000 to $19,000 per person for 2026, expanded 529 plan benefits that increase the amount available for private K-12 education expenses from $10,000 to $20,000 per year, additional qualifying K-12 education expenses in certain situations, and an increase in the annual Roth IRA contribution limit from $7,000 to $7,500 for individuals under age 50. Lauren also discusses the continued availability of the 529-to-Roth IRA rollover provision, which allows eligible beneficiaries to roll up to $35,000 of unused 529 assets into a Roth IRA, subject to applicable rules and annual contribution limits.
Many physicians, surgeons, and other high-income medical professionals worry about saving too much into a 529 plan, especially if a child receives scholarships, chooses a less expensive school, or decides not to pursue graduate education. In this episode, Lauren explores how 529 plans have become significantly more flexible than many families realize and why outdated assumptions may be causing some physician parents to miss valuable planning opportunities.
You’ll learn how 529 plans work, when they make sense for physician families, how state tax benefits can affect your decision, what happens if your child receives a scholarship, how beneficiary changes work between family members, how 529 funds can be used for certain K-12 education expenses, and how the newer 529-to-Roth IRA rollover rules may create additional flexibility for long-term family wealth planning.
Whether you’re an attending physician, surgeon, anesthesiologist, cardiologist, radiologist, dermatologist, emergency medicine physician, pediatrician, OB/GYN, practice owner, or part of a dual-physician household, understanding the evolving rules around 529 plans can help you make more confident decisions about education funding, tax planning, and building wealth for the next generation.
At Vestia Personal Wealth Advisors, we specialize in financial planning for physicians. Our team helps doctors navigate complex financial decisions involving taxes, retirement planning, practice compensation, college savings, investment strategy, and long-term wealth management so they can focus more of their time and energy on medicine, family, and the life they want to build.
If you’re a physician looking for guidance on 529 plans, college funding strategies, retirement planning, tax-efficient wealth building, or comprehensive financial planning, we’d love to connect. myteam@vestia.com
Subscribe for more physician-focused financial planning insights from Vestia Partner and CEO Lauren Oschman and the Vestia team.
#529Day #529Plan #PhysicianFinance #FinancialPlanningForDoctors #PhysicianFinancialPlanning #CollegeSavings #EducationPlanning #DoctorFinances #WomenPhysicians #Surgeons #MedicalProfessionals #TaxPlanning #WealthManagement #PhysicianParents #HighIncomeProfessionals
