Understanding the New 529 College Savings Plan to Roth IRA Transfer Opportunity

Understanding the New 529 College Savings Plan to Roth IRA Transfer Opportunity

Tom Gartner, MSAPM, CFP? Tom Gartner, MSAPM, CFP?

Tom Gartner, MSAPM, CFP?

Wealth Manager

发布日期: 2023年12月28日
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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.

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!


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