my529 to Roth IRA transfers with SECURE 2.0

SECURE 2.0 offers an exciting new opportunity—allowing my529 account owners to transfer funds to a Roth IRA. While still new, it is a simple process, and we are here to help answer any questions you may have. This guide helps determine if your clients have eligible funds to make a transfer—and lets them know how to get started in the process.

First, let’s verify if you have eligible account funds:

• Has your account been open for at least 15 years? Hint: You can see the my529 account creation date on your quarterly statements. See more information in our FAQ “If I change my beneficiary or account owner, does that reset my 15-year clock?”
• The my529 beneficiary and the Roth IRA owner are the same person.
• The rollover doesn’t exceed the Roth IRA owner’s contribution limits such as:
  • Not exceeding Roth IRA owner’s earnings for the chosen year.
  • Not exceeding applicable Roth IRA contribution limits.
  • Not exceeding an aggregate rollover amount of $35,000.
  • Not exceeding the total amount contributed to the 529 account (including related earnings) before the five-year period prior to the rollover.

Once you have verified you have eligible funds, fill out Form 310, the Roth IRA Rollover Request, and submit it via fax or mail to my529.

If you have any questions, you may find the answer in our SECURE 2.0 Frequently Asked Question page. If you don’t find your answer there, you are always welcome to reach out to my529’s Professional Service Team at 888.529.1886.

From the FAN — Spring 2024