A New Opportunity for 529 Account Beneficiaries – Tax-Fee Rollovers to Roth IRAs
Broker-Dealer Law Blog
Beneficiaries of qualified tuition programs under Section 529 of the Internal Revenue Code (“529 accounts”) will have a new opportunity starting January 1, 2024. Under SECURE Act 2.0 (the “Act”), 529 account beneficiaries will be able to rollover funds from the 529 account into a Roth IRA without incurring tax or penalties providing certain requirements are met.
Broker-dealers and registered representatives (“advisors”) will want to know about this rule so as to advise families and students about the funding and related planning considerations for 529 accounts.
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