Has anyone shifted 529 funds to their kiddos Roth?

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  • #94084 Reply

      This became an option for unused 529 funds in 2022, I just don’t know if it’s as easy as contacting Vanguard (where Roth is) and asking them to do it. Thanks for any thoughts or experiences.

      #94085 Reply

        Keep in mind that they are still limited by the Roth IRA contribution limits each year and by needing to have earned income. The account also must have been open for at least 15 years with the child as beneficiary, and you can’t convert any contributions made in the last 5 years (or the growth on those contributions).

        #94086 Reply

          This is such a great change.

          I had front loaded my kids accounts as babies so now I am contributing extra just for the conversion later.

          They’re only 12 and 13 so I have a few more years to go.

          #94087 Reply

            The child has to have earned income. Effectively, it’s not actually a rollover. It’s a contribution coming from the 529.

            #94088 Reply

              I think this was passed in 2022, but not available to do until this year.

              #94089 Reply

                I asked the holder of my child’s 529 plan about this, and they directed me to a form on their site to fill out to apply for it as a trustee-to-trustee transfer, much like how you would move an IRA or 401k plan from one servicer to another.

                The form would allow me to specify the amount of funds to transfer and what company address and account number to transfer it to.

                At the bottom, where I would sign the form, I myself would be certifying that the 529 account had been open 15 years and that the funds were going to a Roth account for the same beneficiary.

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