Why 529 Plans Are a Roth IRA Rollover Option in 2026

In this episode, Lucas and Luna unpack the SECURE 2.0 provision that allows unused 529 plan funds to roll over into a Roth IRA for the beneficiary, effective 2024. They walk through the key limits: the 15-year account rule, the $35,000 lifetime cap, the annual Roth contribution limit, and the requirement that the 529 account be at least 15 years old. Using a concrete example of a family with $40,000 left after their child graduates college debt-free, they explain how to maximize the rollover without triggering taxes or penalties. They also cover pitfalls, like failing to meet the 5-year holding period for the rollover amount. The episode closes with a practical checklist for parents and grandparents managing overfunded 529 plans. This is a must-listen for anyone with a 529 balance that exceeds projected education costs. #529Plan #RothIRA #SECURE2.0 #CollegeSavings #RetirementPlanning #EducationFunding #RolloverStrategy #TaxAdvantaged #Finance #FexingoBusiness #BusinessPodcast #LucasAndLuna #Overfunded529 #529ToRoth #CustodialAccount #FinancialPlanning #WealthTransfer #StudentDebt Keep every episode free: buymeacoffee.com/fexingo