Leftover 529 funds no longer have to sit unused or trigger a penalty on withdrawal — a beneficiary can now roll a limited amount into their own Roth IRA.
How it works
The amount allowed each year is the smallest of three limits: the annual Roth IRA contribution limit, the beneficiary’s earned income for the year, and whatever remains of a $35,000 lifetime cap per beneficiary. The 529 account must also have been open at least 15 years.
What this does not include
Contributions (and their earnings) made within the last 5 years can’t be rolled over, per the source’s eligibility rules — this calculator computes the three headline caps but doesn’t track which specific contributions are old enough to qualify.
How to use this calculator
- Enter how long the 529 account has been open.
- Enter any amount already rolled over lifetime, the annual Roth limit, and the beneficiary’s earned income.
Frequently asked questions
Is there an income limit on this rollover?
No — unlike a direct Roth IRA contribution, the 529-to-Roth rollover has no income restriction, making it available to high earners who couldn’t otherwise contribute to a Roth.
Does the beneficiary need earned income?
Yes — the rollover amount in any year can’t exceed the beneficiary’s earned income for that year, even if the annual Roth limit is higher.
What happens once the $35,000 lifetime cap is reached?
The rollover option is exhausted for that beneficiary regardless of how much remains in the 529 account — any further use of the funds falls back to standard 529 withdrawal rules.
