529-to- Roth – SECURE 2.0
Does the 529 Plan referenced in the SECURE Act 2.0 include 529 Prepaid Tuition Plans? Or just 529 College Savings Plans? For instance, if the beneficiary did not attend college, can the money form a 529 Prepaid Tuition Plan be transferred into a Roth IRA?
Permalink Submitted by Alan - IRA critic on Wed, 2023-01-18 02:11
Prepaid Tuition Plans are Qualified Tuition Programs and are not otherwise excluded in Sec 126, therefore rollovers should be eligible to be made to the beneficiary’s Roth IRA. Hopefully, the IRS will clarify this.
Permalink Submitted by Adrian Croissant III on Wed, 2023-02-15 16:25
Could the 529 Plan rollover to roth IRA referenced in the Secure Act 2.0 potentially include Education Savings Accounts?
Permalink Submitted by Alan - IRA critic on Wed, 2023-02-15 16:46
No. Sec 126 of Secure 2.0 provides for Roth rollovers from Sec 529 accounts only. An ESA falls under Sec 530 and is not included, most likely due to their account balances being very low compared to 529 plans due to low contribution limits.