SECURE Act 2.0 Allows 529 Plan-to-Roth IRA Rollovers

529 plans provide a valuable college savings option, not every 529 plan dollar can be used for qualifying education expenses. Beginning in 2024, the SECURE Act 2.0 will allow taxpayers to roll 529 plan dollars into a Roth IRA if certain conditions are met. The 529 plan must have been maintained for at least 15 years to qualify (529 plan contributions (and earnings thereon) made in the prior five years cannot be rolled into the Roth). The Roth IRA that receives the funds must be maintained in the name of the 529 plan beneficiary. The most that a taxpayer can move from a 529 plan into a Roth is $35,000 (this is a lifetime limit). Each year, Roth rollovers are limited to the difference between the amount transferred and any regular or Roth IRA contributions made during that year. For more information on the rules governing 529 plans, visit Tax Facts Online.: Q 690. Note: Q is updated.