In a recent study MEFA conducted, 69% of Massachusetts residents said they would be likely to consider rolling over unused 529 funds into a Roth IRA account if that option existed. We’ve got some great news for you: that option does exist!
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[00:00:00] In a recent study, MEFA conducted 69% of Massachusetts residents said they would be likely to consider rolling over unused 5 29 funds into a Roth IRA account. If that option existed, well, I’ve got some great news for you. That option does exist. That’s right. As of January 1st, 2024, unused funds from a 5 29 college savings account.
It can be transferred into a Roth IRA for the same beneficiary without any penalty or federal tax ramifications. Now there are some limits. The amount transferred each year is subject to the annual IRA contribution limit. The funds transferred cannot include any 5 29 contributions made in the last five years, and only $35,000 in total can be transferred per beneficiary.
The 5 29 account also must have been open at least 15 [00:01:00] years prior to making a transfer. This is an exciting new benefit of 5 29 plans, making them even more flexible for you and your family. If you’re not already saving in a 5 29 account, you can get started today by visiting MEFA.org/you fund.
