Most probably know about the SECURE 2.0 Act provision permitting 529 funds to be rolled over to Roth IRAs. But this rollover opportunity comes with several restrictions.

There are often discussions about tax credits and 529 plans savings plans, but one tool that that you might overlook is the Coverdell Education Savings Account (ESA).

There are a number of restrictions when it comes to moving money from a 529 plan to a Roth IRA.

Learn whether 529-to-Roth IRA rollovers are subject to state tax. Explore state-specific rules and their tax implications under SECURE 2.0.

The IRS has now said that rollovers done before April 15, 2024 can count as Roth IRA contributions for tax year 2023 if the 529 beneficiary has not already maxed out on his 2023 IRA contribution limit.

Since the 529-to-Roth rollover was not permitted until this year, it was anticipated that any nebulous language or confusion would be cleared up well before the 2024 calendar change. Well, it is a year later, and we have received no guidance from the IRS concerning 529-to-Roth-IRA rollovers.

When it comes to rollovers from 529 plans to Roth IRAs, there are new regulations when it comes to SECURE 2.0.

This article contains questions asked by members of Ed Slott's community that are answered by members of his staff.