Converting Funds
Starting in 2024 eligible clients can convert funds from an unused 529 plan to a Roth IRA. Are we able to Roll funds from a Coverdell ESA to a 529 and then convert those funds to Roth also? Is there a better practice?
Starting in 2024 eligible clients can convert funds from an unused 529 plan to a Roth IRA. Are we able to Roll funds from a Coverdell ESA to a 529 and then convert those funds to Roth also? Is there a better practice?
Permalink Submitted by Alan - IRA critic on Thu, 2023-11-02 16:14
The IRS needs to clarify several aspects of this Secure 2.0 provision, and it looks highly unlikely that this will be able to be implemented in January, and maybe not until 2025 or later. But since ESAs can be rolled into a 529, it is likely that this could become a two step process to eventually get those funds into a Roth IRA.