Don’t Need Your 529? Turn It Into A Roth IRA

Don’t Let Your 529 Go To Waste

If you set up a 529 education plan for your children or grandchildren that is no longer needed for education expenses, there is a new game in town. (Enacted as part of the SECURE 2.0 Act).

You can now transfer money to a Roth IRA for the beneficiary without triggering an income tax (or penalty) on the withdrawal from the 529 — as long as you follow the rules.