Raise Education is designed to be flexible, ensuring that funds can still be used even if a beneficiary decides not to pursue a traditional four-year college degree.
Alternative Uses for Raise Education Funds
K-12 Tuition: Funds can be used for tuition at eligible private or religious K-12 schools.
Apprenticeship Programs: Registered apprenticeship programs that meet federal guidelines are eligible for funding.
Trade Schools & Vocational Training: Funds can be applied to technical and trade schools for careers in fields like healthcare, mechanics, and skilled trades.
Student Loan Repayment: A portion of funds can be used to pay down qualified student loan debt.
Changing Beneficiaries: If the original beneficiary chooses not to use the funds, you can transfer the account to another eligible family member.
Roth IRA Rollover: Due to recent legislation around 529 accounts, they may actually be converted into a Roth IRA for the beneficiary. This means that instead of having a college savings fund, they actually have a retirement fund set up and ready to grow when they're 18.
Non-Qualified Withdrawals: If no other option is used, funds can be withdrawn for non-educational purposes, though they may be subject to taxes and penalties.