529

[jad56061]

I am the account holder and beneficiary of my 529. Can I use the 529 to rollover funds to my roth ira when I hit 15 years if I don't end going to grad school or have kids?

[TeriH]

Great question!

And I actually did this yesterday, and it worked. 

The SECURE 2.0 Act of 2022 allows 529 account holders to roll over up to $35,000 into a Roth IRA without penalty or taxes, starting in 2024. However, there are some restrictions, including:

• The 529 account must have been open for at least 15 years
• The Roth IRA must be in the same name as the 529 account's beneficiary
• Contributions and earnings made in the last five years cannot be rolled over
• The beneficiary's earned income must be at least equal to the rollover amount
• The annual rollover is limited to the amount that can be contributed to an IRA in that year
• The annual amount eligible for rollover is reduced by any traditional or Roth IRA contributions made for that tax year 
  

my 529 plan stated, at present, it was unclear if the 15 year clock resets if you change beneficiaries/ account holder.  But, for , it worked for me.