What to do with overfunded 529 account?
First, let me get this out of the way: I realize this is a first-world problem, but here we are.
Through aggressive early contributions and strong market performance, our 10-year-old's 529 account is over $650k. There are no other plausible beneficiaries in the picture. We do not "need" the money now in any reasonable sense. What should we do?
We can rule out making additional contributions (hah!) -- at least until the next market downturn -- thanks to NY's no-more-contributions-above-$520k rule.
Converting any excess to a Roth IRA would be nice, but $35k is unlikely to move the needle.
Withdrawing $20k/year for private school tuition is an option (though not certain we'll stick with private through 12th grade), but NY treats such withdrawals as nonqualified, so would entail state income tax recapture (we deducted contributions of $10k/year, in addition to the obvious deferral of interest/dividends/gains). So not ideal.
We're inclined to let things ride and see how they play out. Maybe the Roth IRA conversion limit will be increased. Maybe some other avenues for withdrawal will open up. Maybe the funds can be used for grandkids.
Is there anything we're overlooking? Any other suggestions?