If you have unused money in a 529 plan, it can be rolled over to a Roth IRA for the beneficiary of that 529 plan—tax and penalty-free. The added benefit is tax-free growth and tax-free distributions when they take money out down the road. Watch to learn how to correctly fill out the Fidelity form to move your assets from a 529 plan to a Roth IRA held at Fidelity.

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Completing a Fidelity 529 to Roth IRA rollover can be a smart financial move for those looking to maximize their college savings and retirement accounts. By transferring funds from a 529 college savings plan to a Roth IRA, you can potentially benefit from tax-free growth and withdrawals in the future. If you’re considering this option, here’s a step-by-step guide on how to make the rollover process seamless.

1. Understand the Rules and Regulations
Before initiating a Fidelity 529 to Roth IRA rollover, it’s essential to familiarize yourself with the rules and regulations governing this transfer. The IRS allows rollovers from a 529 plan to a Roth IRA, but there are certain conditions that must be met. For example, the funds must be used for qualified education expenses to avoid penalties and taxes.

2. Contact Fidelity Investments
If you have decided to move forward with the rollover, the next step is to contact Fidelity Investments, the financial institution holding your 529 college savings plan. They will guide you through the process and provide you with the necessary paperwork to complete the rollover.

3. Open a Roth IRA Account
If you don’t already have a Roth IRA account, you will need to open one before transferring the funds. Fidelity offers a range of Roth IRA options, so you can choose the one that best suits your financial goals and needs.

4. Complete the Rollover Form
Once you have opened a Roth IRA account, you will need to complete the rollover form provided by Fidelity Investments. This form will include details such as the amount you wish to transfer, the beneficiary of the Roth IRA, and other relevant information. Make sure to double-check all the information before submitting the form to avoid any delays in processing.

5. Review and Sign the Form
Before submitting the rollover form, take the time to review all the details and ensure everything is accurate. Once you are satisfied with the information, sign the form as required and send it back to Fidelity Investments for processing.

6. Monitor the Transfer
After submitting the rollover form, keep track of the transfer process to ensure everything goes smoothly. Fidelity Investments will notify you once the funds have been successfully moved from your 529 plan to your Roth IRA.

7. Monitor Your Investments
Once the rollover is complete, monitor your Roth IRA investments regularly to ensure they align with your financial goals and risk tolerance. Consider speaking with a financial advisor to create a long-term investment strategy that maximizes the potential benefits of your Roth IRA account.

Completing a Fidelity 529 to Roth IRA rollover can be a strategic move for individuals looking to optimize their college savings and retirement accounts. By following these steps and working closely with Fidelity Investments, you can successfully transfer funds from your 529 plan to your Roth IRA and take advantage of potential tax benefits in the future.