529 to ROTH IRA Conversion

Submitted by chris Slaats on Wed, 2024-01-24 14:55

For conversions of a 529 to a ROTH, assuming other qualifications are met, beginning in 2024 only up to the annual ROTH contribution limit can be converted. With 2023 ROTH contributions eligible to be made up to 4/15/24, for this first year can a conversion be made in 2024 from the 529 designated as a 2023 ROTH contribution in addition to a conversion designated as a 2024 ROTH contribution such that effectively a “double up” can be done in 2024?



Submitted by Alan - IRA critic on Wed, 2024-01-24 15:51

  • Apparently yes, based on the recently released 2023 1099 R Inst, applicable text copied below:
  • “Qualified tuition program (QTP) rollover to a Roth IRA.Effective with respect to distributions made after December31, 2023, a beneficiary of a section 529 QTP is permitted toroll over a distribution from the section 529 account to a RothIRA for the beneficiary, under certain conditions (for example,such rollovers must be paid through a directtrustee-to-trustee transfer, are subject to the Roth IRA annualcontribution limit and a $35,000 lifetime limit, and must befrom a section 529 account that has been open for more than15 years). Such rollovers are reported on the Form 5498 asRoth IRA contributions and not as rollover contributions. Adistribution made after December 31, 2023, and before April15, 2024, that is rolled over to a Roth IRA by April 15, 2024,and designated for 2023 would be reported as a Roth IRAcontribution for 2023″

Submitted by chris Slaats on Wed, 2024-01-24 15:55

Perfect, thanks

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