Thank you. I have a question on your answer. When you stated, "A rollover from a 529 plan to your Roth IRA does not count as a contribution and does not affect your annual contribution limits" are you saying that I can still contribute another $7000 to into a Traditional IRA?
I copied the information below from the IRS publication 590 and I thought it meant that if I received a rollover from a 529 Plan to a Roth IRA, this contribution does affect my annual contribution and I cannot contribute another $7000. If what you state is correct would be great! I understand how new this allowed rollover is.
Thank you
Qualified tuition program rollover to a Roth IRA.
Beginning with distributions made after December 31, 2023, a beneficiary of a section 529 qualified tuition program is permitted to roll over a distribution from the section 529 account to a Roth IRA for the beneficiary if certain requirements are met.
The rollover must be paid through a direct trustee-to-trustee transfer to a Roth IRA maintained for the benefit of the beneficiary.
The rollover amount for a year cannot be more than the Roth IRA annual contributions limit, and all such rollovers for the individual’s lifetime cannot exceed $35,000.
The rollover must be from a section 529 account that has been open for more than 15 years.
The distribution cannot exceed the aggregate amount contributed to the program (and earnings attributed to the contributed amount) before the 5-year period ending on the date of the distribution.
