How much leftover 529 money can move to a Roth IRA, and how many years it takes
Updated October 2026
| Requirement | Rule |
|---|---|
| Who receives it | A Roth IRA for the 529’s beneficiary, by direct trustee-to-trustee transfer |
| Account age | The 529 must have been open 15 years (Pub 590-A: more than 15 years) |
| Which money | Only contributions made more than 5 years before the transfer, plus their earnings |
| Yearly amount | Up to the beneficiary’s Roth IRA limit for the year, less other IRA contributions |
| Lifetime amount | $35,000 per beneficiary |
| Earned income | The Roth limit can’t exceed the beneficiary’s taxable compensation |
The rule applies to distributions after December 31, 2023 (SECURE 2.0 Act section 126). The Roth income phase-out does not block it: section 408A(c)(3)(E) adds the rollover back to the income-reduced limit.
Your plan statement shows contributions by date. Enter only contributions made more than 5 years ago plus the earnings on them; newer money cannot move yet. Account age is measured from when the 529 was opened. Earned income means the beneficiary’s wages or self-employment income; other IRA contributions are anything the beneficiary also puts in a traditional or Roth IRA that year, because the rollover shares the same yearly limit.
Yearly amount = the smaller of the IRA limit ($7,500 for 2026, $8,600 at 50 or older) and earned income, minus other IRA contributions. Amount you can move = the smaller of the eligible balance and the lifetime room left ($35,000 minus earlier rollovers). Years = that amount divided by the yearly amount, rounded up. In the default case: the smaller of $7,500 and $20,000 is $7,500; $22,000 moves as $7,500, $7,500 and $7,000 over three years. For the full $35,000: four years of $7,500 and a fifth of $5,000. The calculator holds the 2026 limit for every year; the IRA limit is indexed, so later years may allow more.
| Situation | Yearly amount | Amount that can move | Years | Start |
|---|---|---|---|---|
| $22,000 left, account 17 years old, $20,000 earned (default) | $7,500 | $22,000 | 3 | Now |
| $22,000 left, beneficiary earns $4,000 a year | $4,000 | $22,000 | 6 | Now |
| Grandparent-owned 529, $22,000; grandchild also puts $3,000 a year in an IRA | $4,500 | $22,000 | 5 | Now |
| $60,000 left: the lifetime cap binds | $7,500 | $35,000 | 5 | Now |
| $22,000 left, account only 12 years old | $7,500 | $22,000 | 3 | Wait 3 years |
Low earned income stretches the schedule: at $4,000 a year, $22,000 takes six years. The grandparent-owned account is no different under the rule, because what matters is the beneficiary’s Roth IRA and income. With $60,000 left, $35,000 can move and the other $25,000 needs another use.
The $35,000 cap is per beneficiary for life and is not indexed in the statute; the yearly IRA limit is ($7,500 for 2026 per IRS IR-2025-111). A rollover made between January 1 and April 15 can be designated for the prior year, as Pub 590-A describes for 2025. Two points are unsettled: the statute does not say whether naming a new beneficiary restarts the 15-year clock, and neither Pub 970 nor Pub 590-A addresses it. Until the IRS does, a recent beneficiary change is a risk.
A 529 can also pay qualified education expenses for the same beneficiary later, be rolled to another 529 or an ABLE account for a member of the beneficiary’s family, or have its beneficiary changed to a family member without tax (Pub 970). A non-qualified withdrawal taxes the earnings and generally adds a 10% additional tax on them.
It does not track which dollars are over 5 years old, project investment growth, or model state taxes. State tax treatment of these rollovers varies, so check your state’s 529 plan rules before moving money. A tax professional can confirm eligibility when the account changed beneficiaries or owners.
Rolling over recent contributions. Money added in the last 5 years, and its earnings, does not qualify.
Doubling up with a regular Roth contribution. The rollover and the beneficiary’s own IRA contributions share one yearly limit.
Taking a check. The money must move trustee to trustee; a distribution paid to you is not this rollover.
Ignoring earned income. A student with no job cannot receive a rollover that year, whatever the 529 balance.