529 Conversion To Roth Ira 2024 Tax Implications

529 Conversion To Roth Ira 2024 Tax Implications. Starting in 2024, you can roll unused 529 assets—up to a lifetime limit of $35,000—into the account beneficiary's roth ira, without incurring the usual 10% penalty for nonqualified. This provision takes effect in 2024, not 2023.

You might know you can roll, transfer, or otherwise convert 529 assets into a roth ira account, but how do you actually do it? Starting in 2024, you can roll unused 529 plan funds to a roth individual retirement account, without taxes or penalties.