529-to-Roth Rollover Calculator 2026 β SECURE 2.0 Eligibility & Drawdown Plan
Plan your 529-to-Roth IRA rollover under SECURE 2.0. Check eligibility, calculate max rollover amount, schedule annual rollovers, and project Roth growth vs leaving funds in 529.
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Must be β₯ 15 years old to qualify
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Must have earned income β₯ rollover amount $
Prior rollovers under this beneficiary's $35K lifetime cap $
Reduces available rollover room this year $0
Max Rollover This Year
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Remaining Lifetime Cap
0
Years to Use Full $35K Cap
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Roth Growth Potential to Age 65
Eligibility Checklist
| Rule | Your Situation | Status |
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529-to-Roth Rollover Rules (SECURE 2.0)
Beginning January 1, 2024, unused 529 funds can be rolled over to a Roth IRA for the beneficiary β completely tax-free and penalty-free. This solves the long-standing "overfunding" problem and makes 529s more attractive as savings vehicles even when education costs come in under budget.
Key Limits for 2026
Annual Max Rollover = min(Roth IRA limit, Beneficiary Earned Income, Remaining $35K cap)
Roth IRA Limit 2026: $7,000 (under 50) or $8,000 (50+)
Lifetime Cap per Beneficiary: $35,000
Account Age Requirement: 529 must be β₯ 15 years old
5-Year Rule: Contributions made in past 5 years are NOT eligible
Roth IRA Limit 2026: $7,000 (under 50) or $8,000 (50+)
Lifetime Cap per Beneficiary: $35,000
Account Age Requirement: 529 must be β₯ 15 years old
5-Year Rule: Contributions made in past 5 years are NOT eligible
Example
529 opened 2007, $45K balance, beneficiary age 25, $55K earned income, no prior rollovers:
Account age: 2026 β 2007 = 19 years β | Earned income: $55K > $7K limit β
Max rollover this year: min($7,000, $55,000, $35,000) = $7,000
Years to exhaust cap: $35,000 / $7,000 = 5 years
$35K in Roth at 7% for 40 years (age 25β65) β $520,000 tax-free
Account age: 2026 β 2007 = 19 years β | Earned income: $55K > $7K limit β
Max rollover this year: min($7,000, $55,000, $35,000) = $7,000
Years to exhaust cap: $35,000 / $7,000 = 5 years
$35K in Roth at 7% for 40 years (age 25β65) β $520,000 tax-free
Extended
Multi-Year Rollover Drawdown Planner
Schedule year-by-year 529 rollovers limited by Roth IRA limit and earned income. Project Roth balance through age 60 vs leaving funds in 529.
Enter beneficiary earned income for each of the next 5β7 years. The calculator schedules annual rollovers (limited by Roth limit AND earned income) and projects Roth balance growth to age 60.
| Year | Age | Earned Income | Max Rollover | Actual Rollover | Remaining Cap | Roth Balance |
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Roth Growth vs 529 Balance β Age 25 to 60
Frequently Asked Questions
What are the rules for rolling a 529 into a Roth IRA under SECURE 2.0?
SECURE 2.0 Act Β§126 (effective 2024) allows tax-free and penalty-free rollovers from a 529 plan to a Roth IRA for the 529 beneficiary. Key rules: (1) The 529 account must be at least 15 years old. (2) The lifetime rollover limit is $35,000 per beneficiary. (3) Each year's rollover cannot exceed the annual Roth IRA contribution limit ($7,000 in 2026, $8,000 if age 50+). (4) The beneficiary must have earned income at least equal to the rollover amount. (5) Contributions made to the 529 in the past 5 years (and earnings on those) are not eligible.
Can I roll over a 529 to someone other than the beneficiary?
The rollover must go to a Roth IRA in the name of the 529 beneficiary β not the account owner or any other person. You can change the 529 beneficiary to another family member, then roll over to that new beneficiary's Roth IRA. For example, if your child does not need the 529 funds, you could change the beneficiary to a grandchild and roll over to the grandchild's Roth IRA (assuming the account was opened at least 15 years ago from the original account opening date, which is the date of the account regardless of beneficiary changes β though the IRS has not fully clarified beneficiary change effects on the 15-year clock).
What happens to 529 funds that are not eligible for rollover?
If 529 funds cannot be rolled over (under the $35K limit, account too young, beneficiary lacks earned income), you have three options: (1) Use them for qualified education expenses β tuition, fees, books, room and board, K-12 tuition β which are tax-free. (2) Change the beneficiary to another family member. (3) Take a non-qualified distribution β the earnings portion is taxed as ordinary income PLUS a 10% federal penalty. State recapture of deductions may also apply. The principal (your contributions) is always withdrawn tax-free since you already paid tax on it.
Does the 529-to-Roth rollover count against the annual Roth IRA income limit?
The 529-to-Roth rollover does NOT count against the Roth IRA income phaseout limits (2026: $150,000β$165,000 single; $236,000β$246,000 married jointly). High earners who cannot normally contribute to a Roth IRA can still receive these 529 rollovers. However, the rollover does count against the annual contribution limit ($7,000 in 2026). If the beneficiary also makes a direct Roth contribution of $7,000, they cannot also receive a 529 rollover in the same year.
What is the tax-free growth potential of rolling 529 funds into a Roth IRA?
The Roth IRA is one of the most powerful tax shelters available. Once funds are in a Roth IRA, all growth and qualified distributions are completely tax-free. A 25-year-old who receives $35,000 via 529 rollovers ($7,000/year for 5 years) and earns 7% annually until age 65 would have approximately $519,000 tax-free β compared to the same funds in a taxable account (growing at ~5.6% after-tax) worth ~$353,000. The tax-free growth advantage is approximately $166,000 in this example.