The Roth IRA income limitations are waived with regard to a Roth IRA rollover. The contributions and earnings of a rollover from a 529 plan are proportional, and this carries through to the Roth IRA.

Internal Revenue Service. "Retirement Plan and IRA Required Minimum Distributions FAQs." Internal Revenue Service. "Rollover to a Roth IRA or a Designated Roth Account." House of Representatives ...

The SECURE 2.0 Act, which became law in December 2022, changes the 529 plan rules to permit rollovers of some funds from these college savings accounts into a Roth IRA. It could allow transfers to ...

Contact your plan administrator for a trustee-to-trustee transfer to avoid tax issues during rollover. Open a Roth IRA early to ensure the five-year rule does not delay tax-free withdrawals post ...

A number of events can arise that make a rollover necessary, from job termination to plan dissolution to retirement ... savings while converting to a Roth IRA will likely mean you owe taxes ...

“Rollovers of Retirement Plan and IRA Distributions.” Internal Revenue Service. “Topic no. 557, Additional Tax on Early Distributions from Traditional and Roth IRAs.” Internal Revenue Service.

But a Roth IRA offers options. As of last year, 529 plan account holders can now make tax-free and penalty-free rollovers to their Roth IRA accounts. Although doing this may be subject to certain ...