529 Rollover Clock Reset?
Hello-
Do we know for certain yet if a rollover of a 529 to another 529 plan (same owner and beneficiary) resets the 15yr clock for the 529 to Roth option?
Thank you!
Hello-
Do we know for certain yet if a rollover of a 529 to another 529 plan (same owner and beneficiary) resets the 15yr clock for the 529 to Roth option?
Thank you!
Permalink Submitted by Alan - IRA critic on Tue, 2024-08-13 11:21
No, but I doubt that if a 529 was rolled over 7 years ago the new custodian captured the date the original plan was opened so will have no idea if their balance is eligible for a Roth rollover. The IRS would have to allow the new custodian to accept the word of the plan owner or perhaps ask the plan owner for documentation. Hopefully, the IRS will clarify this and other questions regarding rollover eligibility.