Plan a 529-to-Roth IRA rollover schedule under SECURE 2.0
A 529-to-Roth IRA rollover can give unused education savings a new purpose, but the federal rules restrict when and how much can move to the beneficiary’s Roth IRA. This planner estimates a five-year rollover schedule using the most common constraints: the 15-year account age requirement, a simplified 5-year contribution lookback, the $35,000 lifetime rollover cap, the beneficiary’s earned income, and the annual Roth IRA contribution limit.
Use this 529-to-Roth IRA calculator to test when rollovers might begin, the annual amount the model permits, and whether income, annual Roth room, the lifetime cap, or the seasoned balance is the binding rule. It is a repeatable scenario-planning tool rather than professional advice, so its value is in showing which inputs drive the projected schedule.
529-to-Roth rollover rules modeled in plain English
- 15-year rule: the 529 account generally must have been open for at least 15 years before a rollover can occur.
- 5-year lookback: contributions made in the last 5 years (and related earnings) are generally not eligible to roll. This tool uses a simplified approach described below.
- Earned income requirement: the beneficiary must have enough earned income to support Roth IRA funding for the year, including direct contributions and any rollover.
- Annual Roth IRA limit: planned direct Roth contributions use part of the annual limit, leaving only the unused annual contribution room for a 529 rollover.
- $35,000 lifetime cap: total 529-to-Roth rollovers from a given 529 to a beneficiary are capped at $35,000.
This 529-to-Roth IRA planner models federal constraints only. State tax rules, plan paperwork, beneficiary changes, and later IRS guidance can affect an actual transaction. When a planned rollover is close to a limit, use the result as a starting point for a more detailed review.
How to use the 529-to-Roth IRA rollover calculator
- Enter the 529 account start date and today’s 529 balance.
- Enter how much was contributed in the last 5 years; a single total is sufficient for this simplified model.
- Enter the beneficiary’s annual earned income and any planned direct Roth IRA contributions.
- Enter the annual Roth IRA contribution limit you want to assume and the first tax year to model.
- Click Calculate to generate a five-year 529-to-Roth schedule and a one-line summary you can copy.
When comparing 529-to-Roth rollover scenarios, such as different income levels or start years, change one input at a time and run the planner again. That approach makes it easier to identify the rule driving a change in the schedule.
529-to-Roth rollover model details
For each year in the five-year 529-to-Roth schedule, the calculator estimates the rollover amount R as the smallest of four constraints after checking the 15-year rule. Even when several rules permit a larger transfer, the smallest available amount controls the estimate.
R = min(B, L, I, W)
- B = eligible (“seasoned”) 529 balance available to roll
- L = remaining lifetime rollover capacity (max $35,000 minus prior and modeled rollovers)
- I = earned income room after planned direct Roth contributions
- W = annual Roth contribution room remaining after planned direct Roth contributions
How the planner approximates the seasoned 529 balance
For a 529-to-Roth estimate, the calculator begins with the current 529 balance and subtracts contributions reported from the most recent five years. That creates the initial eligible pool. It then releases the recent-contribution bucket gradually as the five-year projection advances.
Specifically, the 529-to-Roth model assumes the recent-contributions total becomes eligible in five equal slices during the projection window. This is a simplification: actual eligibility depends on exact contribution dates and earnings. The simplified release lets you examine how a five-year lookback can affect rollover timing without building a contribution-by-contribution ledger.
What the 529-to-Roth “Limiting Factor” column means
Each year, the rollover schedule identifies the rule that most constrained the 529-to-Roth amount. If the result is zero, the label helps explain whether the account is not yet 15 years old, earned-income room is unavailable, or lifetime capacity has been used. This matters because identical rollover amounts can result from very different planning constraints.
Worked 529-to-Roth IRA rollover examples
Example A: remaining annual Roth room binds first
Suppose the 529 was opened on 2008-09-01 with a current balance of $42,000, and $9,000 of that total came from contributions made in the last 5 years. The beneficiary earns $28,000/year and plans to contribute $4,000/year directly to a Roth IRA. You assume an annual Roth limit of $6,500, start modeling in 2025, and have $0 prior rollovers.
For 2025, the account is older than 15 years, so the 15-year rule is satisfied. Earned income room is I = 28,000 − 4,000 = 24,000, lifetime capacity is L = 35,000, and annual Roth room remaining is W = 6,500 − 4,000 = 2,500.
The eligible balance B is larger than that annual room. The rollover estimate is therefore R = min(B, 35,000, 24,000, 2,500) = 2,500, with the annual Roth limit as the limiting factor.
Example B: earned income room binds for an early-career beneficiary
Now imagine the beneficiary earns $5,000/year from part-time work and plans to contribute $2,000/year directly to a Roth IRA.
Keep the annual limit at $6,500 and assume the 529 is old enough and has ample seasoned balance.
Earned income room becomes I = 5,000 − 2,000 = 3,000, while annual Roth room is W = 6,500 − 2,000 = 4,500. The rollover estimate becomes R = min(B, L, 3,000, 4,500) = 3,000.
The schedule would ordinarily identify “Earned income room” until income rises or planned direct contributions change.
529-to-Roth rollover schedule results table
After calculation, this table displays a five-year 529-to-Roth IRA schedule beginning with the selected tax year. The “Remaining Lifetime Capacity” column tracks the portion of the $35,000 rollover cap left after each modeled transfer.
| Tax Year | Estimated Rollover ($) | Remaining Lifetime Capacity ($) | Limiting Factor |
|---|---|---|---|
| Run the calculator to generate your schedule. | |||
Practical 529-to-Roth rollover questions and planning notes
1) What if the 529 is not yet 15 years old?
For a 529 account that is younger than 15 years on January 1 of a modeled tax year, this estimator sets that year’s rollover to $0. The schedule labels the result “Account not yet 15 years old.” If the account is approaching its 15-year mark, change the “First Rollover Tax Year” to see when the model begins allowing rollovers.
2) How do direct Roth contributions affect a 529 rollover?
In this planner, direct Roth contributions use both earned-income support and annual Roth contribution room before a 529-to-Roth rollover is considered.
The calculator subtracts planned direct contributions from earned income room (I) and from the entered annual Roth limit to determine remaining annual room (W).
Increasing planned direct contributions can therefore reduce the projected rollover even when the 529 balance is substantial.
3) Why does this 529-to-Roth schedule show only five years?
This 529-to-Roth tool is designed as a quick planning view rather than a long-horizon projection. Five years is enough to show the effect of the simplified contribution lookback and reveal whether a recurring annual constraint or the lifetime cap is likely to bind. To examine a later period, re-run the calculator using a later “First Rollover Tax Year” and the appropriate remaining lifetime capacity.
4) What does “Contributions in Last 5 Years” mean in this model?
Enter one dollar total for contributions made during the recent five-year window in the 529 account. The calculator does not track individual contribution dates; it assumes the reported bucket becomes eligible evenly across the five modeled years. If deposits were uneven, such as a large one-time contribution, actual rollover eligibility may differ from this smooth approximation.
5) What should I do if the 529-to-Roth lifetime cap binds?
If the schedule identifies “Lifetime cap remaining” as the limiting factor, the model is approaching the $35,000 maximum. Additional funds from that 529 generally cannot be rolled to that beneficiary’s Roth IRA under this provision once the cap is exhausted. Remaining 529 assets may require consideration of other permitted uses based on the plan and the taxpayer’s circumstances.
529-to-Roth rollover planning assumptions and limitations
- Simplified 5-year lookback: uses one recent-contributions total and releases it evenly; it does not track exact dates or earnings.
- Static inputs across the schedule: earned income, planned direct contributions, and the annual limit are treated as constant for all five years.
- No investment growth: the 529 balance is reduced only by modeled rollovers; market returns are not projected.
- Federal-only view: state tax treatment, plan-specific rules, and administrative steps are not modeled.
- Not advice: this is an educational estimator; confirm details with your plan and a qualified tax professional.
A real 529-to-Roth IRA rollover can turn on details the planner does not capture, including how earnings are attributed to contributions, how the five-year window is measured, and how the plan processes rollovers. Before moving funds, verify current rules, plan procedures, and documentation requirements.
Arcade Mini-Game: 529 to Roth IRA Rollover Planner Calibration Run
Use this quick arcade run to practice separating useful scenario inputs from common planning mistakes before you rely on the calculator output.
Start the game, then use your pointer or arrow keys to catch useful inputs and avoid bad assumptions.