529 to Roth IRA
You can now roll over 529 plan funds into a Roth IRA . Learn how, along with important rules and limits, here.
Yes, you can rollover unused funds from a 529 plan to a Roth IRA under the SECURE 2.0 Act, with a lifetime limit of $35,000 per beneficiary and certain conditions like a 15-year account opening requirement.
Understanding 529 rollovers to a Roth IRA
Under certain conditions, you can transfer tax- and penalty-free up to a lifetime limit of $35,000 in a 529 to a Roth IRA opened by the 529 beneficiary. 1 The 529 plan must have been maintained for the beneficiary for at least 15 years, subject to annual Roth IRA contribution limits, and transfers must come from contributions made 5 years prior ...
The contributions and earnings of a rollover from a 529 plan are proportional, and this carries through to the Roth IRA . So, you can take a tax-free return of the contributions portion of the rollover after it shows up in the Roth IRA .
Can You Use a Traditional IRA for a Grandchild's 529 Plan
A direct rollover from a traditional IRA to a 529 plan isn't allowed because doing so would trigger taxes and penalties. But there are other ways to use retirement funds for education, such as ...
Eligible unused 529 plan assets can be rolled into a Roth IRA for the same beneficiary. The rollover option may reduce concerns about overfunding a 529 plan for education. Several IRS rules apply ...
Understanding 529 Plan Rollovers to a Roth IRA
How unused 529 funds can be rolled into a Roth IRA tax-free. Learn the 529 plan rollover to Roth IRA rules. From limits to account age, and annual contribution cap.
Unused 529 funds can be rolled into the beneficiary's Roth IRA without a tax penalty. But that's probably not a reason to overfund 529s .
529 to Roth IRA Rollover
SECURE 2.0 lets you roll up to $35,000 from an overfunded 529 into a Roth IRA — tax-free and penalty-free. 2026 rules, the 5 eligibility requirements, step-by-step execution, and a calculator.
A new rule from the SECURE 2.0 Act allows families to move unused money from a 529 college savings plan into a Roth IRA . This change started in 2024 and gives more flexibility if college plans change. The rollover has limits and conditions, but it helps families avoid penalties and use education savings to build retirement funds in the future.