Unused funds in 529 college savings plans can be repurposed in several ways, including rolling over to a Roth IRA or paying off student loans. The Secure 2.0 Act introduces new options for managing these funds, allowing for greater flexibility and tax efficiency.

## Utilizing Unused 529 College Savings Funds Effectively

529 college savings plans are designed to help families save for education expenses, but many account holders find themselves with leftover funds after covering costs.

This can occur for various reasons, such as scholarships, lower-than-expected tuition, or a change in educational plans.

Fortunately, there are several strategies to utilize these unused funds effectively while minimizing taxes and penalties.

### Understanding the New Rollover Option

Starting in 2024, the Secure 2.0 Act allows families to roll over unused 529 funds into a Roth IRA for the same beneficiary.

This option provides a way to convert education savings into retirement savings, but it comes with specific rules.

The 529 plan must have been open for at least 15 years, and contributions made within the last five years cannot be included in the rollover.

Additionally, the total amount that can be rolled over is capped at $35,000 over the beneficiary's lifetime, and the rollover must be executed as a direct transfer to avoid taxes.

**Change the Beneficiary**: One of the most straightforward options is to transfer the 529 plan funds to another qualifying family member.

This can be done without incurring taxes, making it a practical choice if you have other children or relatives who may need educational funding.

**Use for Student Loan Payments**: The SECURE 2.0 Act also permits tax-free distributions from 529 plans to pay off student loans.

You can use up to $10,000 per beneficiary to pay down federal and private student loans, which can be a significant relief for families managing educational debt.

**Save for Future Educational Needs**: If the original beneficiary decides not to pursue a traditional four-year degree, the funds can still be kept in the 529 account for future educational needs.

This includes graduate programs, vocational training, or even continuing education courses.

**Withdraw for Non-Educational Expenses**: While not the most tax-efficient option, you can withdraw funds for non-educational expenses.

However, this will incur taxes on the earnings portion and a 10% penalty on those earnings.

**Utilize for ABLE Accounts**: Families with a child who has disabilities can roll over 529 funds into an ABLE account, which allows for tax-free savings for qualified expenses related to the individual's disability.

This option provides additional flexibility for families facing unexpected challenges.

The introduction of the rollover option to Roth IRAs under the Secure 2.0 Act offers a new avenue for families with unused 529 funds, allowing them to bolster retirement savings while adhering to tax regulations.

Additionally, the ability to change beneficiaries, pay off student loans, or save for future educational needs ensures that families can make the most of their 529 plans.

As always, consulting with a financial advisor can help navigate these options effectively and ensure compliance with IRS regulations.

By understanding these strategies, families can maximize the benefits of their 529 college savings plans and avoid unnecessary penalties, ensuring that their educational savings work for them in the long run.

Utilizing Unused 529 College Savings Funds Effectively

utilizing-unused-529-college-savings-funds-effectively

President Trump's recent economic policies have sparked debate over their impact on the wealth gap in America. While the administration touts a 'Golden Age' for the top 10 percent, critics argue that these measures have led to rising unemployment and economic instability for the broader population.

## Trump's Policies Favor the Wealthy Amid Economic Challenges

President Donald Trump's administration has declared a new 'Golden Age' for America, particularly benefiting the top 10 percent of earners.

This narrative, however, is met with skepticism as economic indicators suggest a troubling trend for the average American worker.

In a recent address, Trump claimed that his policies have ushered in a period of unprecedented economic success, citing a surge in small-business optimism and a significant electoral mandate from the recent elections.

However, the reality on the ground tells a different story.

The US Bureau of Labor Statistics reported a rise in the unemployment rate to 4.3 percent, the highest since the pandemic, with only 22,000 jobs added in August 2025.

This stark contrast raises questions about the sustainability of Trump's economic claims.

The administration's approach has included imposing tariffs aimed at protecting American manufacturing and reducing trade deficits.

Trump has argued that these tariffs are necessary to restore economic sovereignty and create better-paying jobs.

Yet, the immediate effects have been detrimental, with manufacturing jobs declining sharply as companies grapple with increased costs and retaliatory tariffs from trading partners.

Don Beyer, have pointed out that while billionaires may benefit from tax cuts, the average American family faces rising prices and job insecurity.

Moreover, the economic policies have led to a significant trade deficit, projected to reach an all-time high of $49 billion in agricultural trade alone.

This situation has been exacerbated by the ongoing trade wars, which have not only failed to boost domestic manufacturing but have also resulted in job losses across various sectors.

The administration's focus on tariffs has been criticized for creating a "double-whammy" effect, where American companies face higher costs while foreign competitors benefit from lower tariffs.

Despite the administration's claims of a robust economy, the reality is that many Americans are feeling the pinch.

The job market has shown signs of weakness, with a notable decline in job growth over recent months.

The average monthly job addition has dropped from 186,000 in 2024 to just 27,000 in recent months.

This slowdown raises concerns about the long-term viability of Trump's economic policies, particularly as inflation continues to rise.

The administration's narrative of a 'Golden Age' is further complicated by the fact that many Americans do not feel the benefits of this supposed prosperity.

Polls indicate that a significant portion of the population believes the country is headed in the wrong direction, contradicting Trump's assertions of widespread optimism.

The disparity between the experiences of the wealthy and the working class is becoming increasingly pronounced, leading to calls for a reevaluation of the current economic strategy.

In conclusion, while the Trump administration promotes a vision of economic success for the top earners, the broader implications of its policies suggest a growing divide.

The challenges faced by the average American worker, including rising unemployment and inflation, highlight the need for a more inclusive approach to economic policy that addresses the needs of all citizens, not just the affluent few.

As the administration continues to navigate these complex issues, the question remains: who truly benefits from this 'Golden Age' in America?

Trump's Policies Favor the Wealthy Amid Economic Challenges

trump-s-policies-favor-the-wealthy-amid-economic-challenges

Federal Reserve Chairman Jerome Powell's approach to interest rates and inflation has proven prescient as the US economy navigates complex challenges. His careful calibration of monetary policy aims to balance maximum employment with stable prices, reflecting a nuanced understanding of economic dynamics.

## Jerome Powell's Insights on Interest Rates and Inflation

Federal Reserve Chairman Jerome Powell has faced significant scrutiny over his management of interest rates and inflation, yet recent economic indicators suggest that his strategies may have been more accurate than critics have acknowledged.

As the US economy continues to evolve, Powell's insights into monetary policy have become increasingly relevant.

Over the past year, the US economy has demonstrated resilience amid shifting economic policies.

The labor market remains near maximum employment, and while inflation is still elevated, it has decreased significantly from its post-pandemic highs.

This context underscores Powell's assertion that a careful approach to interest rates is essential for fostering sustainable economic growth.

In his recent remarks, Powell highlighted the importance of maintaining a balance between aggregate demand and supply.

He noted that the policy rate had been set at 5-1/4 to 5-1/2 percent for over a year, a stance deemed necessary to combat inflation and support the labor market.

This careful calibration reflects a broader understanding of the economic landscape, particularly as new challenges arise, such as higher tariffs and tighter immigration policies, which have impacted labor force growth and consumer spending.

The current economic environment presents a complex interplay of cyclical and structural factors.

For instance, the July employment report indicated a slowdown in job growth, with payrolls increasing by only 35,000 per month over the past three months, a significant drop from earlier in the year.

Despite this, the unemployment rate remains historically low at 4.2 percent, suggesting that the labor market is still in a state of balance.

Powell's approach acknowledges these nuances, emphasizing that monetary policy can stabilize cyclical fluctuations but has limited capacity to address structural changes.

Inflation remains a critical concern, with higher tariffs contributing to price increases in certain goods.

The Personal Consumption Expenditures (PCE) price index rose by 2.6 percent over the past year, with core PCE prices increasing by 2.9 percent.

Powell has indicated that while these price increases may be temporary, they warrant careful monitoring to prevent a more persistent inflation problem.

His commitment to maintaining stable inflation expectations is crucial, especially as households and businesses remain concerned about rising prices.

Critics of Powell's policies often overlook the broader context of his decisions.

For instance, former President Donald Trump frequently criticized the Fed's interest rate policies, arguing for lower rates to stimulate growth.

However, Powell's measured approach reflects a deeper understanding of the economic dynamics at play, particularly the risks associated with overly aggressive monetary easing.

The Fed's recent adjustments to its policy framework, including a focus on flexible average inflation targeting, demonstrate a commitment to adapting to changing economic conditions while maintaining long-term stability.

Moreover, Powell's communication style has evolved to foster greater transparency and public understanding of monetary policy.

Unlike previous Fed chairs, he has made efforts to engage with the public and clarify the implications of Fed actions on everyday Americans.

This shift is essential in an era where many citizens remain unaware of the Fed's role and the complexities of monetary policy.

In conclusion, Jerome Powell's approach to interest rates and inflation reflects a nuanced understanding of the US economy's challenges.

His commitment to balancing maximum employment with stable prices, along with a focus on clear communication, positions the Fed to navigate the complexities of the current economic landscape effectively.

As the economy continues to evolve, Powell's insights will remain critical in shaping monetary policy and addressing the challenges ahead.

Jerome Powell's Insights on Interest Rates and Inflation

jerome-powell-s-insights-on-interest-rates-and-inflation

Recent government reports on inflation and GDP growth have sparked confusion and skepticism among economists and the public. While the figures suggest a robust economy, many experts warn that they are distorted by data collection issues and do not reflect the lived experiences of most Americans.

## Government Inflation and GDP Figures: A Misleading Snapshot

Recent reports from the Bureau of Labor Statistics and the Bureau of Economic Analysis have presented a seemingly positive picture of the US economy, with inflation dropping to an annual rate of 2.7% and GDP growth soaring by 4.3% in the third quarter of 2025.

However, these figures have been met with skepticism, as many economists argue that they are misleading and do not accurately reflect the economic realities faced by most Americans.

The release of these statistics has historically been a moment for political posturing, with parties seizing the opportunity to claim credit or assign blame.

This month, however, the numbers have led to more confusion than celebration.

White House economic advisor Kevin Hassett hailed the inflation report as "an absolute blockbuster," while House Speaker Mike Johnson attributed the GDP growth to the policies of the Trump administration.

Yet, many economists caution against taking these figures at face value.

Diane Swonk, chief economist at KPMG US, emphasized the need for caution, stating, "You've got to take it with a grain of salt." She noted that the inflation report does not align with the prices observed in everyday life.

This sentiment is echoed by financial analyst Zachary Karabell, who argues that while the numbers provide some insight into the economic system, they fail to capture the lived experiences of ordinary Americans.

One significant factor contributing to the skepticism surrounding these figures is the impact of the recent government shutdown, which disrupted data collection processes.

The Bureau of Labor Statistics had to rely on "imputed" numbers rather than actual data, leading to potentially skewed results.

For instance, the inability to collect rental data for October resulted in an artificially low inflation rate, as the agency assumed no change in rents during that period.

Experts predict that it will take months to gather reliable data that accurately reflects housing inflation, further complicating the interpretation of the current statistics.

Moreover, the economic growth reflected in the GDP figures appears to be driven primarily by spending from wealthy consumers and significant corporate investments in technology, particularly artificial intelligence.

This has resulted in a "K-shaped" economy, where the rich are thriving while middle- and lower-income households struggle to keep up.

According to Bank of America analysts, spending by the top third of earners has surged, while the lower-income demographic has seen stagnation in their spending habits.

This disparity raises questions about the overall health of the economy and who truly benefits from its growth.

Consumer confidence has also been on a downward trend, indicating that many Americans do not feel the positive effects suggested by the GDP and inflation figures.

The highest-earning 10% of households now account for nearly half of all consumer spending, a stark contrast to the situation in the 1980s when they represented only a third of spending.

This growing divide highlights the disconnect between economic statistics and the realities faced by the majority of the population.

Federal Reserve Chairman Jerome Powell has acknowledged that job growth may already be negative, despite published figures suggesting otherwise.

He noted that non-farm payroll gains have averaged about 40,000 a month since April, but he believes there is an overstatement in these numbers, suggesting a more accurate figure could be negative.

This discrepancy further illustrates the challenges in interpreting economic data and the potential for misleading conclusions.

The historical context of economic statistics also plays a role in the current skepticism.

Kennedy Sr famously criticized the limitations of gross national product as a measure of societal well-being, pointing out that it fails to account for factors that truly enhance quality of life.

This perspective remains relevant today, as many economists argue that the current metrics do not adequately reflect the complexities of the modern economy.

In conclusion, while the latest government figures on inflation and GDP growth may appear promising, they are fraught with complications and do not accurately represent the economic experiences of most Americans.

As the effects of the government shutdown continue to reverberate through the data collection process, it is crucial for policymakers and the public to approach these statistics with a critical eye and an understanding of their limitations.

The true state of the economy may be more nuanced than the numbers suggest, and ongoing scrutiny will be essential in the months to come.

Government Inflation and GDP Figures: A Misleading Snapshot

government-inflation-and-gdp-figures-a-misleading-snapshot

Treasury Secretary Scott Bessent has stated that the US private economy is experiencing significant growth under President Trump, contrasting it with the economic conditions during President Biden's administration. Bessent highlighted a 4.7% annualized growth rate in real GDP, attributing this success to private sector momentum and criticizing Biden's reliance on government spending.

## Scott Bessent: Private Economy Thriving Under Trump

Treasury Secretary Scott Bessent has asserted that the US private economy is "booming" under President Donald Trump, marking a stark contrast to the economic conditions experienced during President Joe Biden's administration.

In a recent post on X, Bessent noted that real GDP growth, excluding government activity, has surged by 4.7% at an annualized rate over the last two quarters.

Bessent emphasized that this growth reflects a significant shift in the structure of economic expansion, with the private sector now playing a dominant role.

He described the current economic surge as a positive indicator of improving labor market conditions in the months ahead.

This assertion aligns with Trump's recent political victories, as the third-quarter GDP figures exceeded expectations, coming in at 4.3% growth.

In his remarks, Bessent criticized the Biden administration's economic policies, which he claims have primarily relied on government spending.

He argued that this approach has led to historic inflation and a decline in living standards for many Americans.

According to Bessent, the dynamics of growth under Biden were largely driven by government expansion, which he believes has contributed to economic stagnation and increased inflationary pressures.

Bessent's comments reflect a broader narrative within the Trump administration that seeks to position its economic policies as beneficial for the American worker.

He pointed out that the previous administration's focus on central planning and heavy regulation has stifled economic growth, leading to what he termed "economic constipation" similar to that experienced before the Reagan era.

In contrast, he praised Trump's policies of tax reform, deregulation, and fair trade as catalysts for noninflationary growth and significant real wage increases for American workers.

The Treasury Secretary's perspective is not without its critics.

Some economists, such as Michael Pearce from Oxford Economics, have suggested that the recent GDP surge may be driven by temporary factors, including increased defense spending and net trade contributions, rather than sustainable economic growth.

Pearce also highlighted the disparities in economic recovery between affluent and low-income households, indicating that the benefits of the current economic climate are not evenly distributed.

Bessent's remarks come amid ongoing discussions about the role of tariffs in the US economy.

He has defended Trump's tariff policies as a means to negotiate better trade terms and bring manufacturing jobs back to the United States.

Bessent argued that the tariffs are designed to create leverage in negotiations with trading partners, ultimately aiming to reduce reliance on foreign manufacturing and enhance domestic production capabilities.

Despite the optimistic outlook presented by Bessent, concerns remain about the potential long-term impacts of tariffs on consumer prices and business operations.

Small business owners have expressed apprehension about the immediate effects of tariffs, with some indicating that the increased costs could jeopardize their operations.

For instance, one business owner noted that the tariffs could significantly raise the retail price of their products, making it difficult to compete in the market.

As the Trump administration continues to navigate its economic policies, Bessent's assertions about the booming private economy serve as a rallying point for supporters of the administration's approach.

However, the contrasting views from economists and business owners highlight the complexities and challenges of achieving sustainable economic growth in a polarized political environment.

In summary, while Bessent's comments underscore a belief in the positive trajectory of the US economy under Trump, the ongoing debates about the efficacy of tariffs and government spending suggest that the path forward may be fraught with challenges.

The administration's focus on revitalizing the private sector and addressing the needs of American workers will be critical as it seeks to maintain momentum in the face of economic uncertainties ahead.

Scott Bessent: Private Economy Thriving Under Trump

scott-bessent-private-economy-thriving-under-trump

The US economy expanded at a robust 4.3% annual rate in the third quarter, driven by strong consumer spending despite ongoing inflation. While this growth marks the fastest pace in two years, concerns remain about the sustainability of this momentum amid rising prices and a potential government shutdown.

## U.S. Economy Grows 4.3% Amid Persistent Inflation Challenges

The US economy grew at a surprisingly strong 4.3% annual rate in the third quarter, marking the most rapid expansion in two years.

This growth was primarily driven by consumers who continue to spend despite ongoing inflationary pressures.

According to the Commerce Department, the gross domestic product (GDP) from July through September rose from a 3.8% growth rate in the previous quarter.

Economists had anticipated a more modest growth of just 3% during this period, highlighting the unexpected strength of consumer spending, which accounts for about 70% of US economic activity.

Consumer spending increased to a 3.5% annual pace last quarter, up from 2.5% in the April-June period.

However, some economists caution that this growth spurt may be short-lived.

The extended government shutdown could negatively impact the economy in the fourth quarter, alongside a growing number of Americans feeling fatigued by persistent inflation.

A recent survey by the Conference Board indicated that consumer confidence has slumped to levels not seen since the US implemented broad tariffs on its trading partners earlier this year.

Stephen Stanley, chief US economist at Santander, noted that the surge in consumer spending resembles last year's fourth quarter, suggesting that households may soon need to take a breather.

This situation reflects a "K-shaped economy," where wealthier Americans benefit from rising incomes due to stock market gains, while lower-income households struggle with stagnant wages and higher prices.

The GDP report also revealed that inflation remains above the Federal Reserve's target.

The personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge, climbed to a 2.8% annual pace last quarter, up from 2.1% in the second quarter.

Core PCE inflation, which excludes volatile food and energy prices, rose to 2.9% from 2.6% in the previous quarter.

Economists warn that persistent inflation could hinder the likelihood of an interest rate cut by the Fed in January, despite concerns about a slowing labor market.

Chris Zaccarelli, chief investment officer for Northlight Asset Management, stated that if the economy continues to perform at this level, there may be less urgency to address a slowing economy, although inflation could emerge as a significant threat.

Investment in artificial intelligence (AI) also contributed to economic growth, with spending on intellectual property increasing by 5.4% in the third quarter, following a 15% jump in the second quarter.

Government consumption and investment grew by 2.2% in the quarter, bolstered by increased expenditures at state and local levels, as well as federal defense spending.

However, private business investment fell by 0.3%, primarily due to declines in housing and nonresidential building investments.

Exports grew at an impressive 8.8% rate, while imports, which subtract from GDP, fell by 4.7%.

The report is the first of three estimates the government will release regarding GDP growth for the third quarter of the year.

Despite the robust growth, the labor market remains a concern.

The US economy added 64,000 jobs in November but lost 105,000 in October, with the unemployment rate rising to 4.6%, the highest level since 2021.

Economists describe the labor market as being in a "low hire, low fire" state, with businesses hesitant to make significant changes due to uncertainties surrounding tariffs and the effects of elevated interest rates.

Job creation has averaged only 35,000 per month since March, a significant drop from the 71,000 average in the previous year.

In summary, while the US economy's growth in the third quarter is a positive sign, the challenges posed by inflation and a potentially unstable labor market raise questions about the sustainability of this momentum moving forward.

U.S. Economy Grows 4.3% Amid Persistent Inflation Challenges

u-s-economy-grows-4-3-amid-persistent-inflation-challenges

Motive Technologies, an AI-powered fleet management company, has filed for an initial public offering on the New York Stock Exchange under the symbol 'MTVE.' The company reported significant revenue growth but also a widening net loss, as it prepares to join a wave of tech firms looking to go public in 2026.

## Motive Technologies Files for IPO on NYSE

Motive Technologies, a San Francisco-based company specializing in AI-powered fleet management software, has filed for an initial public offering (IPO) on the New York Stock Exchange under the ticker symbol "MTVE." This move positions Motive among a growing number of tech companies aiming to go public in 2026, including notable names like SpaceX and OpenAI.

In its filing, Motive reported a net loss of $138.5 million on revenue of $327.3 million for the nine months ending September 30, 2025.

This represents a significant increase in revenue compared to the same period in the previous year, where it reported $268.9 million in revenue and a loss of $113.9 million.

The company also noted a 22% year-over-year revenue growth for the nine-month period, indicating a positive trend despite the losses.

Founded in 2013, originally under the name Keep Truckin, Motive has developed a suite of AI tools designed to enhance fleet management across various industries, including logistics, construction, and energy.

The company claims its technology has played a crucial role in improving safety and efficiency, with its AI Dashcam reportedly preventing 170,000 collisions and saving 1,500 lives on the road.

Motive's client base includes major corporations such as Halliburton, NBCUniversal, and Maersk, showcasing its broad appeal across different sectors.

The company employs over 4,500 people, including 400 full-time data annotators who work on enhancing its AI models.

The IPO filing comes at a time when the US IPO market is showing signs of recovery, with several companies looking to capitalize on favorable market conditions.

Analysts predict that 2026 could be a landmark year for IPOs, particularly for tech firms, with estimates suggesting that around 200 new offerings could raise as much as $60 billion.

Motive's filing also highlights its ongoing patent-infringement litigation with competitor Samsara, which went public in 2021 and currently holds a market capitalization of $22 billion.

This legal battle underscores the competitive landscape in the fleet management technology sector, where innovation and intellectual property are critical to success.

As Motive prepares for its IPO, it has not disclosed the number of shares it plans to offer or the expected price range.

The proceeds from the offering are intended for working capital and other general corporate purposes, which could help the company further develop its technology and expand its market reach.

With a strong revenue trajectory and a commitment to leveraging AI for fleet management, Motive Technologies is poised to make a significant impact in the public market, joining a wave of tech companies that are reshaping their industries through innovation and strategic growth.

As the IPO landscape evolves, investors will be closely watching Motive's performance and the broader implications for the tech sector in 2026 and beyond.

Motive Technologies Files for IPO on NYSE

motive-technologies-files-for-ipo-on-nyse

A Treasury official has indicated that the Federal Reserve may lower interest rates next year, even with strong economic growth projected at 3%. This perspective is based on the current low inflation environment and the need to stimulate interest-sensitive sectors of the economy.

## Fed Rate Cuts Possible Amid Strong Economic Growth, Says Treasury Official

A Treasury official has suggested that the Federal Reserve could cut interest rates next year, despite expectations of robust economic growth.

Joe Lavorgna, a counselor to Treasury Secretary Scott Bessent, stated in a recent interview that the economy is on track to grow at a rate of 3% in 2024, driven by supply-side improvements and capital spending.

Lavorgna emphasized that this growth could lead to lower inflation, allowing the Fed to adjust rates without the typical concerns associated with a booming economy.

He argued that if interest rates, when adjusted for inflation, remain high, they could further restrict economic activity.

He noted that interest-sensitive sectors are still weak, indicating that monetary policy could have a significant impact if rates are lowered.

The backdrop for this discussion includes a recent GDP report showing a strong growth rate of 4.3% in the third quarter of 2023, largely fueled by a 3.5% increase in consumer spending and a 1.6% contribution from trade.

However, there are signs of slowing business investment, with growth in this area dropping to 2.8% and equipment investment slowing to 5.4%.

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