529 to Roth IRA Rollover
The 529 owner (not beneficiary) died – Does this impact the tax/penalty free transfer to a Roth IRA – assuming all requirements (i.e. 15 years, etc.) have been satisfied.
Thank you
The 529 owner (not beneficiary) died – Does this impact the tax/penalty free transfer to a Roth IRA – assuming all requirements (i.e. 15 years, etc.) have been satisfied.
Thank you
Permalink Submitted by Alan - IRA critic on Fri, 2024-08-09 12:21
In many cases there will be a successor owner named for the 529 plan (eg a relative of the decedent), but even if the deceased owner’s estate becomes the owner there is a good chance that the rollover could be completed because Sec 126 is worded with respect to contributions to the 529 and the holding period, regardless of who the owner happens to be when the rollover is made. I assume your question contemplates no change of the 529 beneficiary, whose Roth IRA would receive the rollovers.