Can I Make A 529-To-Roth IRA Transfer?

The 529-To-Roth IRA transfer is a new and interesting feature that was recently passed into law from the SECURE Act 2.0, and many clients (and advisors!) are curious as to whether they can take advantage of it.

Using this guide, you will be able to quickly determine if your client is eligible to implement a 529-to-Roth IRA transfer and whether it might be a good fit for them. 

This flowchart covers the important criteria a client needs to consider when determining if they can make a 529-to-Roth IRA transfer, such as: 

• Whether the client has had the 529 account open and funded for a sufficient period of time. 
• Ensuring the 529 beneficiary and Roth IRA owner are correct before transferring.
• Understanding how earned income, previous Roth IRA contributions, and total 529-to-Roth IRA transfer limits can affect one’s ability to make a transfer. 
• Being mindful of whether a 529-to-Roth IRA transfer is the best fit for the client’s situation.

Click here for a client-facing email template.