How a 529 Plan Can Roll Over Into a Roth IRA

Starting in 2024, families can roll unused 529 college savings plan funds into a Roth IRA without penalty—up to $35,000 over a lifetime. In this episode, Lucas and Luna walk through exactly how the rule works, the 15-year account age requirement, the annual contribution cap tied to the IRA limit, and a concrete example: a family with $20,000 left in a 529 after their child graduates. They compare the rollover versus leaving the money for a future beneficiary or taking a non-qualified withdrawal. The hosts also address the biggest catch: you can only roll over amounts that have been in the 529 for at least five years. Perfect for parents or grandparents who over-saved and want to repurpose those dollars for retirement—entirely tax-free and penalty-free. #529ToRothIRA #RothIRA #529Plan #CollegeSavings #RetirementPlanning #TaxFreeRollover #SECUREAct20 #FinancialPlanning #FamilyFinance #Unused529Funds #RothIRAConverison #EducationSavings #WealthManagement #FexingoBusiness #BusinessPodcast #Finance #Investing #TaxStrategy Keep every episode free: buymeacoffee.com/fexingo