529 to ROTH 15yr rule
Can anyone confirm that the 15yr rule for the 529 being in existence is similar to, say, a ROTH IRA 5yr rule? Meaning, a client opened the 529 over 15yrs ago, but just recently moved custodians. The 529 itself has been open for over 15yrs, but the newest account has only been open for a few months. Would this account still qualify for the 529 to ROTH option? Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2023-04-27 03:21
This is yet another question among the many issues regarding these transfers that will have to be resolved by IRS Regs. I doubt that many prior 529 transfer dates to different plans have been tracked by the current custodian. It will be a challenge to resolve all of these issues as well as the reporting requirements for both 529 plans and Roth custodians in time for such transfers to take place in just 8 months.