Starting in 2024 you will have the ability to rollover any unused funds in a
529 plan to a Roth IRA for that beneficiary. This is a great benefit for those
individuals that do not use 529 money for a multitude of reasons. I have
talked to many clients about 529 accounts and there is a fear of potentially overfunding 529 plans and leaving them with too much money and paying a
fee or taxes to remove those funds. Some have the fear that their child
might not go to college and the money not be used. This addition of being
able to fund a Roth IRA for the beneficiary is a great way to alleviate the fear
of this money not being used. This is an additional change to 529 plans with
the first major change coming in 2017 when Congress decided that 529
plans can be used for grades K-12.

What are some of the rules for the 529 plan to Roth IRA Rollover?
1. The Roth IRA must be in the name of the 529 plan beneficiary
2. The money must be moved directly into the Roth IRA
3. The beneficiary must have earned income
4. The 529 plan must have been maintained for 15 years or longer
5. Any contributions to the 529 plan within the last 5 years(and the
earnings on those contributions) are ineligible to be moved to a Roth
IRA
6. The maximum lifetime amount that may be transferred to the
beneficiary is $35,000

For those of you that may have been on the fence about contributing to a
529 this is another good reason to consider contributing to one of these
plans. If you do not use these funds towards education you are setting the
beneficiary up well for retirement and giving them a head start….(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

A 529 plan rollover to a Roth IRA can be a great way to save for your retirement. With a 529 plan, you can save for your child’s college education and also get some tax benefits. But once your child is done with college, you may want to switch your 529 plan to a Roth IRA. Here’s what you need to know about making the switch.

First, you need to make sure that your 529 plan allows for a rollover to a Roth IRA. Not all plans do, so check with your financial advisor or the plan administrator to make sure it’s an option.

Second, you need to decide if a Roth IRA is the right choice for you. With a Roth IRA, you’ll pay taxes on the money you contribute, but any earnings you make are tax-free in retirement. This can be a great way to save for retirement, but it’s important to understand the tax implications before making the switch.

Third, you need to make sure you’re eligible for a Roth IRA. Generally, you need to have earned income to be eligible for a Roth IRA.

Fourth, you need to decide how much money you want to rollover. You can rollover up to the entire balance of your 529 plan, but you may want to consider rolling over only a portion of it.

Finally, you need to fill out the necessary paperwork to complete the rollover. You’ll need to fill out a form to transfer the funds from your 529 plan to your Roth IRA. Make sure you have all the necessary information, such as account numbers and beneficiary information, before you start the process.

Making a 529 plan rollover to a Roth IRA can be a great way to save for retirement. Just make sure you understand the tax implications and eligibility requirements before making the switch. With the right planning, you can maximize the benefits of your 529 plan and save for the future.