529 to Roth IRA Rollover Instructions

Effective January 1, 2024, owners of a Section 529 College Savings Plan are permitted to roll over funds from their 529 account into the account beneficiary’s Roth IRA.

This new rule does not apply to Education Savings Accounts (ESAs), but ESA funds can be moved into a 529 account, then subsequently rolled into a Roth IRA, assuming all applicable conditions are satisfied. 

Important Details:

  • This direct rollover can only be made to the Roth IRA of the 529 account beneficiary (not the account owner).
      • If your daughter got married and changed her last name, please be sure her name is updated as the beneficiary on the 529 account before you initiate the rollover.
  • The 529 account must have been established for a minimum of 15 years.
  • Contributions and earnings being rolled over must have been in the account for at least 5 years.
  • MAGI phaseouts for Roth IRA contributions do not apply to 529 to Roth IRA rollovers.
  • The 529 account beneficiary must have earned income equal to the amount being contributed/rolled into the Roth IRA.
  • The maximum lifetime amount that can be rolled over from a single 529 account to a Roth IRA is $35,000 per account beneficiary.

This summary does not include all eligibility requirements and limitations. Consult current IRS guidance and your tax professional before taking action.

Yearly Amount You Can Roll Over From 529 to Roth:

  • Max IRA contribution limit for the year minus any contributions already made.

How to Complete the Rollover:

  • Individuals who believe they may qualify should review current IRS guidance and consult their tax advisor before initiating a rollover. Eligibility depends on individual circumstances. 
  • In Wisconsin, you have until the tax filing deadline (April 15th) to fund last year’s contributions.

Edvest 529 Instructions:

      • Click “Account Center”, then “Forms”.
      • Scroll down under “Withdrawals” and click “Direct Rollover Out to Roth IRA”.
      • Download and complete the form, then mail it in to the address listed on the front page. 

If you use a different 529 plan provider or need help finding the rollover form, please contact EWM and one of our advisors will be happy to assist you. 

Click to Download

Related Solutions:
529 College Savings Benefits
How to Open an Edvest 529 Account
In-Service Rollovers & Mega Backdoor Roth Solution
Roth IRA Conversion Solution
IRA-to-HSA Rollover Solution

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Disclosures: Information contained herein is intended for informational, illustrative and/or educational use only and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purpose nor shall it be construed to be the provision of individualized investment, tax or legal advice. Endowment Wealth Management, Inc. (“EWM”) is not soliciting or recommending any action based on this material. This is neither an offer nor a solicitation to buy/or sell securities in any state or jurisdiction where EWM is not registered, or notice filed and does not qualify for an exemption from such registration and notice filing requirements. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that consider all of the particular facts and circumstances of the investor’s own situation. All investments involve risk and potential loss of capital and, unless otherwise stated, are not insured or guaranteed.

While the content herein has been obtained from sources that we consider reliable, we do not represent that the information is accurate, complete, or current and it may be relied upon as such. Reliance upon any information in this material is at the sole discretion of the reader. Content is subject to change without notice.

This material is intended solely for general educational purposes. It is not intended as, and should not be relied upon as, tax advice for any particular individual. Federal tax laws are complex and subject to change. Eligibility for a Section 529-to-Roth IRA rollover depends on individual circumstances and applicable law. Readers should consult their tax advisor regarding their specific situation before taking any action.

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