Which 529 account must be 15 years old — the one being rolled, or any?

The specific 529 account being rolled over must itself be at least 15 years old. You cannot use a newer account. If you have multiple 529 accounts, each one's eligibility is evaluated independently based on when that account was opened, not the first 529 you ever opened.

Can I roll over money contributed last year?

No. Contributions made within the 5 most recent calendar years are excluded from the eligible rollover pool. This applies to the contributions themselves and a pro-rata share of earnings attributable to those contributions. You must wait until those contributions are more than 5 years old before they can be rolled over. This rule prevents the 529 from being used as a Roth IRA workaround by simply depositing and immediately rolling over.

What is the $35,000 lifetime cap?

Each beneficiary can receive a total of $35,000 in 529-to-Roth IRA rollovers over their lifetime — across all 529 accounts combined. The annual rollover is also limited to the Roth IRA contribution limit for that year ($7,000 in 2026 for beneficiaries under 50). This means completing the full rollover typically takes 5 years at the current annual limit.

Does the beneficiary's earned income actually matter?

Yes. Unlike regular Roth IRA contributions, there is no income ceiling preventing the rollover, but the earned income floor still applies. If the beneficiary earns $3,000 in a year, no more than $3,000 can be rolled over — regardless of the account balance or annual Roth limit. Years when the beneficiary has little or no earned income (graduate school, gap years) can delay the rollover schedule significantly.

Does the rollover count against the Roth IRA contribution limit?

Yes. The 529-to-Roth rollover counts against the beneficiary's annual Roth IRA contribution limit. If the beneficiary already contributes $3,000 to a Roth IRA, only $4,000 more (up to the $7,000 limit) can be rolled over from the 529 in that same year. The combined total cannot exceed the lesser of the annual limit or earned income.

What happens to the 529 beneficiary requirement?

The Roth IRA receiving the rollover must be in the name of the 529 beneficiary — not the account owner. The beneficiary must also have earned income at least equal to the rollover amount. There is no requirement that the beneficiary actually used the 529 funds for education; the rollover applies to unused leftover balances.

Is the rollover reported as income?

No. A qualifying 529-to-Roth rollover is not included in the beneficiary's gross income and is not subject to the 10% early distribution penalty. The rollover is reported on Form 1099-Q (from the 529 custodian) and on Form 5498 (from the Roth IRA custodian). Because it is not income, it does not affect MAGI-based phase-outs for the Roth IRA itself.

What if my 529 is only 12 years old?

You must wait until the account is at least 15 years old. There is no way to accelerate this clock. If you opened the account in 2015, the first eligible rollover year is 2030. In the meantime, the funds continue growing tax-deferred — the wait is not necessarily harmful if there is a long runway before the beneficiary needs the Roth funds.

Retirement & Investing

529-to-Roth IRA Rollover Calculator

Find out how much of your leftover 529 balance qualifies for a tax-free Roth IRA rollover, how long the rollover will take, and how much you give up by taking a penalty withdrawal instead.

By The FinCalc TeamUpdated May 25, 2026

SECURE Act 2.0 created a new escape hatch for unused 529 funds: starting January 1, 2024, you can roll leftover money directly into the beneficiary's Roth IRA — tax-free and penalty-free. The catch: the 529 must be at least 15 years old, contributions from the last 5 years are excluded, and the lifetime rollover cap is $35,000. This calculator walks through every rule, shows how long the rollover will take, and compares the Roth path against simply taking the money out with a penalty today.

How the 529-to-Roth Rollover Works

The SECURE Act 2.0 (signed December 2022, effective January 1, 2024) added a new provision under IRC §408A: unused 529 funds can be rolled directly into the beneficiary's Roth IRA without tax or penalty, subject to several conditions.

The four key rules:

1. 15-year account age. The 529 account itself must be at least 15 years old. The clock runs from when the account was opened, not when contributions were made. An account opened in 2008 qualifies starting in 2023.

2. 5-year contribution exclusion. Contributions made in the most recent 5 calendar years — and a pro-rata share of earnings attributable to those contributions — are excluded from the rollover-eligible pool. This prevents last-minute stuffing of a 529 to circumvent Roth IRA income limits.

3. $35,000 lifetime cap. The total rolled from 529 accounts to a beneficiary's Roth IRA over their lifetime cannot exceed $35,000. At the current annual Roth limit, this takes at least 5 years to complete.

4. Annual rollover = lesser of Roth limit or earned income. Each year, the rollover is capped at the Roth IRA contribution limit ($7,000 in 2026, $8,000 for age 50+) minus any other Roth contributions already made, and further limited by the beneficiary's earned income for that year.

The tax math:

A non-qualified 529 distribution normally triggers income tax plus a 10% penalty on the earnings portion. The rollover provision bypasses both entirely — the transfer moves directly to the Roth IRA, where it grows tax-free and can be withdrawn tax-free in retirement. This is a meaningful difference in long-run value.

When This Calculator Is Most Useful

When your child finishes school with a 529 balance remaining. This is the primary use case. If the beneficiary received scholarships, chose a lower-cost school, or didn't use all the funds, the rollover converts an otherwise stranded asset into a retirement account head start.

When planning ahead for a young beneficiary. If you opened a 529 for a newborn, the account will be 18+ years old when the child finishes school — well past the 15-year threshold. You can model how much will be left after education costs and how long the rollover will take.

When evaluating whether to leave money in a 529 vs. switch beneficiaries. If one child has excess 529 funds but another could use them for education, compare the value of the rollover for the first beneficiary against the education value for the second.

When the 529 has been open exactly 14–15 years. This is the decision point: the rollover window is about to open or just opened. The first eligible year is worth understanding before making contribution decisions.

When the beneficiary has variable earned income. Graduate students, freelancers, and early-career people often have years of low income that limit the annual rollover capacity. Modeling the schedule helps set realistic expectations for how long the full rollover will take.

Understanding the Inputs

Year 529 Account Was Opened: The calendar year the 529 account was first established. The account must be at least 15 years old before any rollover can begin. If you opened the account in 2010, the earliest eligible rollover year is 2025. This is measured from the opening date — not the date of any contribution.
Current 529 Balance: The total account balance today including both principal contributions and accumulated earnings. The calculator uses the balance to determine the earnings fraction, which then determines how much of the last-5-years contributions are excluded.
Total Cumulative Contributions: The sum of every contribution ever made to this 529 account over its lifetime, regardless of when. This is used to calculate the proportion of the balance that represents earnings (balance minus total contributions), which determines how much of recent contributions must be excluded pro-rata.
Contributions in Last 5 Calendar Years: Any contributions made in the 5 most recent tax years are excluded from the rollover-eligible pool — along with a pro-rata share of earnings attributable to those contributions. For example, if 25% of total contributions were made in the last 5 years, then 25% of total earnings are also excluded.
Prior 529-to-Roth Rollovers: The total amount already rolled from any 529 account into a Roth IRA in previous years. The $35,000 cap is a lifetime limit across all 529 accounts for a given beneficiary — prior rollovers reduce the remaining headroom.
Beneficiary Annual Earned Income: The beneficiary's earned income (W-2 wages or net self-employment income) for the year. The annual 529-to-Roth rollover cannot exceed the beneficiary's earned income, regardless of the Roth IRA contribution limit. If the beneficiary earned $4,000, the rollover cap is $4,000.
Other Roth IRA Contributions This Year: If the beneficiary already contributes to a Roth IRA, that amount reduces the space available for the rollover. The combined total of regular Roth contributions plus the 529 rollover cannot exceed the annual Roth IRA limit ($7,000 in 2026, $8,000 if age 50+) or earned income, whichever is less.
Federal Marginal Income Tax Rate: Used only for the penalty-withdrawal comparison at the bottom of the results. If someone took the eligible pool as a non-qualified distribution today, earnings would be taxed at ordinary income rates plus a 10% penalty. Your federal marginal rate determines the tax cost of that alternative.

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The FinCalc Team

Personal Finance Experts

The FinCalc team is a group of personal finance writers, analysts, and engineers dedicated to building accurate, transparent financial calculators. Every formula is verified against industry standards and explained in plain language.

Last reviewed and updated: May 25, 2026