529 Rollover to Roth IRA
With this Secure Act 2.0 provision starting in 2024, does the 529 beneficiary need sufficient earned income that is applicable for the 529 conversion?
With this Secure Act 2.0 provision starting in 2024, does the 529 beneficiary need sufficient earned income that is applicable for the 529 conversion?
Permalink Submitted by Alan - IRA critic on Sat, 2023-07-15 19:00
Yes, same annual contribution limits and earned income requirements as for a regular Roth contribution apply, but no MAGI limit. The Roth IRA regular contribution basis is then increased by the portion of the 529 transfer attributed to 529 contributions, but not by the portion attributed to 529 gains.