Q. In the Putnam.com link you posted. It mention about "The 529 beneficiary who is receiving the transferred funds in a Roth IRA is subject to the same earned income requirement that applies to all IRA contributions". Is that true (It doesn't mention on the other CNN link)?
A. Yes.
Q. Then the beneficiary must have at least $7000 earned income in 2024 to take the benefit of transfer?
A. Yes and no. Yes, it must be 2024 earned income. But, there is no minimum. For example: if she makes $2000 in a part time job, she can roll over as much as $2000. She's not allowed to roll over the maximum $7000, because she did not have $7000 compensation (earned income).
Q. Or, does it count for 2023 earned income?
A. No.
Here are two more articles on the subject:
https://www.kiplinger.com/retirement/retirement-plans/529-plans-get-a-boost-with-tax-free-rollovers-...
https://www.journalofaccountancy.com/news/2023/mar/saving-college-new-529-to-roth-irs-transfer-rule.....
