529 Plans Get a Boost With Tax-Free Rollovers to Roth IRAs

You’ll soon be able to roll over funds from your 529 plan into a Roth IRA, thanks to recent legislation.

A parent investing money into a child's education fund
(Image credit: Getty)

Maybe you had a child change their mind and not go to college or you saved more than necessary, and now you’re wondering what to do with the cash locked away in your 529 plan. Thanks to the SECURE 2.0 Act, you’ll soon be able to roll over funds from your 529 plan into a Roth IRA, as long as certain conditions are met. Here’s what you need to know about the new changes set to go into effect next year.

What are the new tax rules for 529 plans? 

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Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.