529 to Roth Rollover
When rolling over funds from a 529 plan to a Roth IRA, do the contributions and the earnings on those contributions have to be from at least 5 years prior or is it just the contributions that have to be from 5 years prior in order to be able to rollover into Roth IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2024-08-20 12:58
The rollover is limited to the balance in the 529 as of 5 years prior to the rollover. That balance would include earnings on the prior contributions.
However, if there were losses instead of gains, it’s not clear whether the rollover limit would have to reflect the losses or not.