Stadelman law expands financial flexibility for education savings programs

SPRINGFIELD - Families will now have enhanced college savings opportunities thanks to State Senator Steve Stadelman.

"This law gives families peace of mind, knowing that their hard-earned savings will not go to waste," said Stadelman (D-Rockford). "By enabling the rollover of unused funds into a retirement account, we are helping young adults build a secure financial foundation for the future."

The law allows parents with 529 college savings plans to utilize unused or leftover college or trade school funds by adding them to a retirement account. This provision ensures that savings intended for educational purposes can continue to benefit the student, even if their educational expenses are less than anticipated.

"I remain committed to providing flexible, forward-looking financial situations for Illinois families," said Stadelman. "By ensuring that educational savings can be effectively repurposed, we are helping create a more secure and prosperous future for our children."

Senate Bill 3133 was signed into law Friday and takes effect immediately.