529 to Roth Rollover Calculator
Calculate how many years it takes to roll over your leftover 529 plan balance to a Roth IRA under SECURE 2.0. See the $35,000 lifetime cap, annual Roth contribution limits, and the total tax-free amount you can move.
What Is the 529 to Roth Rollover?
The 529 to Roth IRA rollover is a provision of the SECURE 2.0 Act that took effect in 2024. It lets families roll over leftover funds from a 529 education savings plan into a Roth IRA for the beneficiary — tax-free and penalty-free. Before SECURE 2.0, unused 529 money was effectively stuck: withdrawing it for non-education use meant paying income tax plus a 10% penalty on earnings. Now up to $35,000 of unused 529 funds can become retirement savings without any tax bill.
The $35,000 Lifetime Cap and Other Rules
The rollover has strict limits. The $35,000 lifetime cap applies per beneficiary across their lifetime — not per year, not per 529 account. Each year's rollover is limited to the annual Roth IRA contribution limit ($7,000 in 2026, $8,000 if the beneficiary is age 50+), and that total is reduced by any other Roth or traditional IRA contributions the beneficiary makes that year. The 529 account must have been open for at least 15 years, and contributions made in the last 5 years (plus their earnings) cannot be rolled over. The beneficiary must also have earned income equal to the rollover amount for that year.
Who Should Use This Rollover?
It is ideal for families who over-funded a 529, have a child who got a scholarship, or whose beneficiary chose a cheaper school. Grandparents who want to help both a grandchild's education and retirement also benefit — an over-funded 529 becomes a head start on retirement savings. It is less useful if the beneficiary will need the full 529 for education, since the 15-year seasoning rule prevents using it as a Roth back-door with recent contributions. Remember — this rollover does not circumvent income limits on direct Roth contributions, which is intentional IRS policy.
Strategy: Maximize the Tax-Free Benefit
Because the annual cap is small (~$7,000), using the full $35,000 takes at least 5 years. Start the rollover as soon as the beneficiary has earned income — even a part-time summer job qualifies. Keep the beneficiary's own Roth contributions separate; every dollar they put in reduces the rollover room for that year. If married, consider rolling smaller amounts to two different spouses' IRAs by changing the beneficiary (though the 15-year clock may restart — check with a CPA). The earlier the rollover starts, the longer the compounding — $35,000 rolled over by age 25 grows to over $500,000 by age 65 at 7% annual return.