What are the limitations and restrictions of a 529 Rollover to a Roth IRA?

Effective January 1, 2024, CollegeCounts 529 assets can be rolled over directly into a Roth IRA.

IMPORTANT: The following limitations and restrictions apply:

• The CollegeCounts 529 Account must have been maintained at least 15 years.
• Only contributions (and any earnings attributable thereto) made to the CollegeCounts Account more than five years prior can be rolled over.
• The Roth IRA rollover must be made in a direct trustee-to-trustee transfer to a Roth IRA account maintained for the benefit of the CollegeCounts Designated Beneficiary.
• Rollover contributions cannot exceed the IRA contribution limit for that tax year ($7,000 in 2024) and is reduced by any “regular” traditional or Roth IRA contributions made by the beneficiary in that year.
• The aggregate amount for all years of Roth IRA Rollovers for the same Designated Beneficiary from all 529 qualified tuition programs may not exceed $35,000 per beneficiary over their lifetime.

Account Owners should consult their own tax and financial professionals before making a Roth IRA Rollover.