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What You Need to Know About 529 Rollovers Into Roth IRAs

December 29, 2025

I wanted to bring to your attention recent important changes to 529 plans that may impact your college savings strategy. Leftover funds in 529s can now be moved to Roth IRAs. However, there are many requirements and restrictions to keep in mind.

Here are the key eligibility criteria and restrictions for moving a 529 to a Roth IRA:1

  • The 529 plan must have been open for a minimum of 15 years.
    Changing beneficiaries to another student may restart the 15-year clock.
  • The owner of the Roth IRA must be the beneficiary of the 529 plan (i.e., the student).
  • Any money moved from a 529 plan to a Roth IRA account will be subject to Roth IRA annual contribution limits.
  • The lifetime limit is $35,000.
  • You can't convert 529 contributions from the past 5 years.


We are sharing this update about the new 529 plan rules so that you have the most current information regarding paying for college.

If you have any questions about these changes or wish to discuss the potential impact on your existing college strategy, please don't hesitate to reach out. Our professionals can provide more detailed information about 529 plans and offer guidance and insight into the state plan you are considering. We look forward to hearing from you.

1. Investopedia.com, June 17, 2025

A 529 plan is a college savings plan that allows individuals to save for college on a tax-advantaged basis. State tax treatment of 529 plans is only one factor to consider prior to committing to a savings plan. Also, consider the fees and expenses associated with the particular plan. Whether a state tax deduction is available will depend on your state of residence. State tax laws and treatment may vary. State tax laws may be different from federal tax laws. Earnings on non-qualified distributions will be subject to income tax and a 10% federal penalty tax.

Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing. Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investment in any state's 529 Plan.

A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawal can also be taken under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.  Depending on state law, Roth IRA distributions may be subject to state taxes.

This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.