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Can I Make A 529 To Roth IRA Transfer?

Can I Make A 529 To Roth IRA Transfer?

| December 26, 2023

Understanding the 529-to-Roth IRA Transfer

The SECURE Act 2.0 has introduced a new feature - the 529-to-Roth IRA transfer. This might seem complicated, but don’t worry! This guide will help you understand if you can benefit from it.

What You Need to Know

When thinking about a 529-to-Roth IRA transfer, here are some things you should consider:

  1. How Old is Your Account?: You need to have had your 529 account open and funded for a certain period of time.
  2. Who Owns the Accounts?: Make sure the 529 account and the Roth IRA account are in the correct names before you transfer.
  3. Income and Contribution Limits: Your income, any previous contributions to a Roth IRA, and the total amount you can transfer from a 529 to a Roth IRA could affect your ability to make a transfer.
  4. Is it Right for You?: A 529-to-Roth IRA transfer might not be the best fit for everyone. It’s important to consider your individual situation.

By understanding these factors, you can make an informed decision about whether a 529-to-Roth IRA transfer is right for you.

Disclaimer

Please note that this is a general guide and may not cover all individual circumstances. It’s always a good idea to consult with a financial advisor before making any major financial decisions.

Important: We’re currently awaiting further guidance from the IRS in 2024 regarding the 529-to-Roth IRA transfer for advanced situations. So, stay tuned for more updates!

Happy planning!