Can I transfer 529 plan funds to a Roth IRA?

Yes, under the SECURE 2.0 Act (effective 2024), you can roll over unused 529 plan funds into a beneficiary's Roth IRA, subject to annual contribution limits and a $35,000 lifetime cap.

What are the eligibility requirements for a 529 to Roth IRA rollover?

The 529 account must have been open for at least 15 years, and contributions made within the last 5 years (and their earnings) are not eligible for rollover. Annual rollovers are limited to the Roth IRA contribution limit.

Is the 529 to Roth IRA transfer tax-free?

Yes, qualified rollovers from a 529 plan to a Roth IRA are tax-free and penalty-free, as long as you meet the eligibility requirements and stay within the annual and lifetime limits.

Do I need earned income to move 529 money into a Roth IRA?

Yes. SECURE 2.0 requires the beneficiary to have earned income (wages or self-employment income) in the tax year of the transfer that is at least as large as the rollover amount. If earned income is $0, the Roth contribution limit for the year is effectively $0.

Does a 529 to Roth transfer reduce my Roth IRA contribution room?

It does. Transfers count toward the beneficiary's annual Roth IRA contribution limit, so any direct Roth or traditional IRA contributions already made this year reduce the remaining room available for a 529 rollover.

What happens if the 529 account owner changed beneficiaries?

Changing beneficiaries can restart the 15-year clock. The 529 account must have been open for the same beneficiary for at least 15 years before rolling funds into that individual's Roth IRA. If the beneficiary was recently updated, the plan may need to season longer.

How does the strict 5-year contribution rule affect eligibility?

Some interpretations exclude amounts attributable to contributions (and related earnings) made in the last 5 years. Strict mode subtracts user-entered contributions made within that window from the eligible balance. Turning it off assumes those funds are allowed—verify with a tax professional.

Can parents complete the transfer if they own the 529?

Yes. The 529 account owner (often a parent) directs the rollover, but the Roth IRA must belong to the beneficiary, who also needs earned income and available annual IRA limit. Transfers go directly trustee-to-trustee from the 529 to the beneficiary's Roth IRA.

529 to Roth IRA Transfer Calculator (SECURE 2.0)

Educational tool only—not tax advice. Confirm any rollover with your custodian and advisor. IRS rules and contribution limits update periodically.

Beneficiary & plan inputs

Beneficiary age

Tax year

529 plan open duration

Plan must be open for at least 15 years for the beneficiary to be eligible.

How many years has the plan been open?

Enter number of years (e.g., 17)

Earned income (this tax year)

State (optional)

For state-specific guidance (not used in calculations yet).

Strict / conservative mode

Leave on for the cautious interpretation of IRS guidance. Toggle off if your advisor confirms recent contributions are transferable.

Contributions made in the last 5 years

IRA contribution limit

Suggested: $7,500.00

IRA contributions already made this year

529 current balance

Lifetime 529 → Roth already transferred

Lifetime cap is $35,000 per beneficiary.

Results

15-year ruleEarned incomeAnnual IRA roomLifetime cap5-year rule

Maximum transfer this year

$7,500.00

Eligibility: Eligible

What's binding?

Annual IRA limit

Years plan open

Annual IRA space left

$7,500.00

Limit minus contributions already made this year.

Lifetime cap remaining

$35,000.00

Eligible 529 dollars

$34,000.00

Strict mode excludes last 5 years of contributions.

Advisor summary

Tax year 2026 18 years since the 529 opened Earned income: 12000 IRA limit remaining: $7,500.00 Lifetime cap remaining: $35,000.00 Eligible 529 dollars: $34,000.00 Maximum transfer this year: $7,500.00 Limiting factors: Annual IRA limit

How the calculator works

Confirm the 529 has been open for the beneficiary at least 15 years.
Check that the beneficiary has earned income this year.
Compute IRA space left: annual limit minus IRA contributions already made.
Calculate lifetime cap remaining: $35,000 minus prior 529→Roth transfers.
Determine eligible 529 dollars (strict mode subtracts the last 5 years of contributions).
Maximum transfer = minimum of IRA space, earned income, lifetime cap remaining, and eligible 529 dollars.

Always document the transfer with your custodian. Trustee-to-trustee transfers avoid IRS Form 1099-R reporting as a taxable distribution.

529 to Roth IRA rollover FAQs

Related Calculators

2026 Overtime Tax Deduction Calculator

Estimate your qualified overtime deduction, income phase-out, and federal tax savings for 2026. Calculate the FLSA half-time premium separately from gross overtime pay.

2026 Car Loan Interest Deduction Calculator

Calculate the eligible passenger vehicle loan interest deduction and estimated federal savings for 2026, including the $10,000 cap and MAGI phase-out.

2026 Tips Tax Deduction Calculator

Estimate the qualified tips deduction and federal tax savings for 2026. Apply the per-return limit, MAGI phase-out and self-employed net-profit restriction.