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Essential Information for Transferring from a 529 to a Roth IRA: The Rollover Process

529 to Roth IRA Rollover One big change from Secure Act 2.0 was the allowance of money to be rolled from a 529 account to a Roth IRA beginning in 2024. There’s a lot of fine print, which we’ll cover in a minute. But if you do everything correctly, you will be able to transfer up to $35,000 in your lifetime from a 529 account to your Roth IRA. That lifetime $35,000 limit is per person. And, you can do this transfer regardless of your income. Which is a big potential benefit for high income households who earn too much to be able to do regular Roth IRA contributions. Here’s the fine print you need to know about in order to take advantage of this. First, the 529 must have been opened for 15 years before you do the transfer to a Roth IRA. And, no 529 contributions, or earnings from contributions from the last 5 years are allowed to be transferred. Next, the owner of the Roth IRA must be the beneficiary of the 529. Most 529s are set up with a parent or grandparent as the

Is it Possible to Perform the 529 to Roth Rollover After Reaching Maximum Contribution for Backdoor Roth IRA?

... ( read more ) LEARN MORE ABOUT: IRA Accounts CONVERT IRA TO GOLD: Gold IRA Account CONVERT IRA TO SILVER: Silver IRA Account REVEALED: Best Gold Backed IRA Can You Still Do the 529 to Roth Rollover if You Maxed Out Your Backdoor Roth IRA? Saving for your child's education is an important financial goal for many parents. One popular option is utilizing a 529 college savings plan, which offers tax advantages and allows your savings to grow over time. However, what if you have also maxed out your backdoor Roth IRA contributions? Can you still perform a 529 to Roth rollover in this scenario? Let's dive into the specifics. Firstly, let's briefly understand what the backdoor Roth IRA is. The backdoor Roth IRA is a strategy used by individuals whose income exceeds the limits set for contributing directly to a Roth IRA. By employing this tactic, one can make contributions to a traditional IRA and then convert them into a Roth IRA, benefiting f

New 529 Plan to Roth IRA Rollover | A Powerful New SECURE Act 2.0 Strategy

SECURE Act 2.0 made some major changes to current retirement planning laws. Has your retirement plan adapted? You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to Timestamps: 0:00 New SECURE Act 2.0 Rollover Strategy 0:28 529 Plans Explained 2:13 The 529 Plan to Roth IRA Rollover 5:27 The Million Dollar Family Gifting Strategy - - - - - - - - - - - - - - - - - Always remember, "You Don't Need More Money; You Need a Better Plan" 🍿 Subscribe to our channel: 🏆 Join our Weekly Email Series: 📈 Talk with us about your retirement plan here: 📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing - Safeguard Wealth Management is an SEC Registered Investment Advisor. Safeguard Wealth Management is not an insurance provider. All content on Youtube is for informational purposes only a