Formula: Key rules this estimator models (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 (direct contributions plus any rollover).
- Annual Roth IRA limit: total Roth IRA funding for the year cannot exceed the annual IRS contribution limit (as entered).
- $35,000 lifetime cap: total 529-to-Roth rollovers from a given 529 to a beneficiary are capped at $35,000.
This page is a federal-rule estimator. State tax rules, plan paperwork, beneficiary changes, and IRS guidance updates can affect real-world eligibility.
If you are close to a limit, treat the output as a starting point for a more detailed review.
How to use the 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 fine 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 schedule and a one-line summary you can copy.
If you are comparing multiple scenarios (for example, different earned income levels or different start years), change one input at a time and re-run the calculator.
That makes it easier to see which constraint is actually driving the schedule.
Model details (what the calculator is actually doing)
For each year in the five-year schedule, the calculator estimates the rollover amount R as the smallest of four constraints—after checking the 15-year rule.
In other words, even if three rules would allow a larger rollover, the smallest rule wins.
R = min(B, L, I, W)
- B = eligible (“seasoned”) 529 balance available to roll
- L = remaining lifetime rollover capacity (max $35,000 minus prior rollovers)
- I = earned income room after planned direct Roth contributions
- W = annual Roth IRA contribution limit (as entered)
How “seasoned balance” is approximated here
The calculator starts with your current 529 balance and subtracts (a) contributions made in the last 5 years and (b) prior rollovers. That produces an initial eligible pool.
Then, it gradually releases the recent-contribution bucket over time.
Specifically, it assumes the “recent contributions” total becomes eligible in five equal slices across the projection window. This is a simplification: real eligibility depends on exact contribution dates and earnings.
The benefit of the simplification is that you can quickly see how the 5-year lookback might affect timing without building a contribution-by-contribution ledger.
What the “Limiting Factor” column means
Each year, the schedule labels the rule that most constrained the rollover amount. If the rollover is zero, the label helps explain why (for example, the account is not yet 15 years old, earned income room is zero, or the lifetime cap is exhausted).
This is useful because two scenarios can have the same rollover amount for very different reasons.
Worked examples (two common patterns)
Example A: annual limit binds first (default-style scenario)
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.
The annual limit is W = 6,500. The eligible balance B is large enough that it does not bind in this scenario.
Therefore the rollover estimate is R = min(B, 35,000, 24,000, 6,500) = 6,500, and the limiting factor is the annual Roth limit.
Example B: earned income binds (a realistic early-career case)
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 plenty of seasoned balance.
Earned income room becomes I = 5,000 − 2,000 = 3,000. Even though the annual limit is higher, the rollover estimate becomes R = min(B, L, 3,000, 6,500) = 3,000.
In the schedule, you would typically see “Earned income room” as the limiting factor until income rises or direct contributions change.
Schedule table (results)
After you calculate, the table below will populate with a five-year schedule starting from your selected first tax year.
The “Remaining Lifetime Capacity” column shows how much of the $35,000 cap is left after each year’s modeled rollover.
Estimated 529-to-Roth rollover schedule (5 years)
| Tax Year |
Estimated Rollover ($) |
Remaining Lifetime Capacity ($) |
Limiting Factor |
| Run the calculator to generate your schedule. |
Practical questions and planning notes
1) What if the 529 is not yet 15 years old?
If the account is younger than 15 years as of January 1 of a modeled tax year, this estimator sets the rollover for that year to $0.
In the schedule, the limiting factor will read “Account not yet 15 years old.” If you are close to the 15-year mark, try changing the “First Rollover Tax Year” input to see when the schedule begins to allow rollovers.
2) How do direct Roth contributions interact with the rollover?
This calculator treats direct Roth contributions as using up part of the beneficiary’s annual Roth “space.”
That is why it subtracts planned direct contributions from earned income room (I) and also compares the rollover to the annual limit (W).
If you increase planned direct contributions, the rollover amount may decrease even if the 529 balance is large.
Introduction: 3) Why does the schedule only show five years?
The tool is designed as a quick planner rather than a long-horizon projection. Five years is often enough to see which constraint binds and whether you are likely to hit the lifetime cap.
If you want to extend the horizon, you can re-run the calculator with a later “First Rollover Tax Year” after you’ve used some lifetime capacity.
4) What does “Contributions in Last 5 Years” mean in this simplified model?
Enter a single dollar total representing contributions made during the most recent five-year window.
The calculator does not track exact contribution dates; instead, it assumes that bucket becomes eligible evenly over the next five modeled years.
If your contribution pattern was lumpy (for example, a large one-time deposit), the real-world eligibility could differ from this smooth release.
5) What should I do if the lifetime cap binds?
If the schedule shows “Lifetime cap remaining” as the limiting factor, you are approaching the $35,000 maximum.
At that point, additional 529 funds generally cannot be rolled to the beneficiary’s Roth IRA under this provision (based on current rules).
Planning then shifts to other uses of the 529 (qualified education expenses, beneficiary changes, or other options depending on your plan and tax situation).
Assumptions and limitations (important)
- Simplified 5-year lookback: uses a single “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.
Also note that IRS guidance and plan administration details can matter. For example, how earnings are attributed to contributions, how the five-year window is measured, and how rollovers are processed can affect eligibility.
If you are implementing a real rollover, verify the current rules and documentation requirements before moving funds.
