The new SECURE 2.0 Act of 2022 has many retirement-friendly options to assist with boosting taxpayer retirement savings.  One of these is the new 529-to-Roth IRA rollover transfer, which goes into effect in 2024.  There are specific rules to follow as follows:

• Lifetime Maximum transfer for a 529 beneficiary is $35,000.
• The 529 account must have existed for at least 15 years.
• No contributions or earnings in the 529 account from the 5 years before the transfer can be transferred to the Roth IRA
• Transfers are subject to annual Roth IRA contribution limits (but no upper-income restraint):
  • $6,500 for 2023, $7,500 if the beneficiary is 50 or older
    • other direct Roth IRA contributions made during the year reduce the 529 transfer amount allowed
  • Must have earned income equal to or greater than the Roth IRA transfer

The following article from the Journal of Accountancy has great examples of timing and income requirements.

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