Under the SECURE 2.0 Act, beneficiaries of 529 plans may roll over unused funds into a Roth IRA through a direct trustee-to-trustee transfer, subject to a $35,000 lifetime cap and the applicable annual Roth IRA contribution limit. To qualify, the 529 account must have been maintained for at least 15 years, and any contributions (and associated earnings) from the preceding five years are ineligible for rollover. This provision offers families a valuable opportunity to repurpose unused education savings for retirement without incurring taxes or penalties.
Contact your Warner Trusts and Estates attorney to determine whether this strategy fits your family’s plan
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