529 to Roth IRA Rollover Planner

What this 529 to Roth IRA rollover planner does

This tool helps you estimate how much of a 529 college savings plan can be rolled into the beneficiary’s Roth IRA each year under the SECURE 2.0 rules that began in 2024. It focuses on the federal rules around the $35,000 lifetime cap, the 15-year account age requirement, the 5-year lookback on contributions, and the interaction with annual Roth contribution limits and earned income.

Use it to answer questions like:

• How soon can we start moving leftover 529 money into a Roth IRA?
• How much can we roll in the first year versus later years?
• Will earned income or the annual Roth contribution limit be the bottleneck?
• Roughly how many years will it take to reach the $35,000 lifetime rollover maximum?

The calculator produces a simple schedule that shows several consecutive tax years, the estimated rollover amount each year, and which rule is limiting that rollover.

Key SECURE 2.0 rules this calculator models

The federal 529-to-Roth rollover provision is narrow. At a high level, to qualify for a rollover in a given tax year:

• The 529 account must have been open for at least 15 years.
• Contributions (and earnings on those contributions) made in the last 5 years are not eligible to be rolled.
• The beneficiary must have earned income at least equal to the sum of their Roth IRA contributions and any rollover for that year.
• Total annual Roth IRA contributions (including rollovers) cannot exceed the IRS contribution limit for that year.
• The beneficiary has a $35,000 lifetime cap on 529-to-Roth rollovers from a given 529.

Individual 529 plans and states may have additional restrictions, paperwork, or tax considerations. This tool focuses on a simplified view of the federal rules only.

How the calculator estimates your eligible rollover

The calculation starts from four main ideas: the portion of the 529 balance that is considered “seasoned,” the remaining lifetime rollover capacity, the beneficiary’s earned income room, and the annual Roth IRA contribution limit.

Core rollover formula

For each tax year in the schedule, the estimated eligible rollover amount R is the minimum of four constraints:

• B: seasoned 529 balance available to roll.
• L: remaining lifetime rollover capacity under the $35,000 cap.
• I: earned income room after planned direct Roth contributions.
• W: annual Roth IRA contribution limit for the tax year.

If the 529 has not yet met the 15-year requirement for that tax year, the calculator sets R = 0 even if the other terms would allow a rollover.

Seasoned balance (B)

The seasoned balance represents how much of the 529 is eligible to be rolled after excluding recent contributions and prior rollovers. The calculator approximates this as:

• S: current 529 balance.
• C: contributions made in the last 5 years.
• Rprior: dollar amount of prior 529-to-Roth rollovers already completed for this beneficiary from this account.

The tool uses a simplified approach to the 5-year rule: it assumes that the total recent-contribution bucket unlocks evenly over the next five tax years. Each year, one-fifth of that bucket is added to the seasoned pool, increasing B.

Lifetime cap (L)

The SECURE 2.0 provision currently allows up to $35,000 of 529-to-Roth rollovers per beneficiary from a given 529. If you have already completed some rollovers, the remaining capacity is:

L = 35,000 − prior rollovers so far

Each year’s modeled rollover amount reduces this lifetime capacity in the schedule until it reaches zero.

Earned income room (I)

Roth IRA contributions (including amounts coming from a 529 rollover) cannot exceed earned income for the year. If the beneficiary plans to make direct Roth contributions, that reduces room for a rollover.

The calculator approximates earned income room as:

I = earned income − planned direct Roth contributions

If this number is negative, the calculator treats I as zero for that year.

Annual contribution limit (W)

You can adjust the annual Roth contribution limit field to match the current IRS limit for the beneficiary’s situation. The tool uses that value as:

W = annual Roth contribution limit

Both direct contributions and rollovers for the year must fit under W, so a higher planned direct contribution typically reduces the room available for R.

Understanding the rollover schedule table

After you submit the form, the calculator produces a table similar to:

For each year, the “Limiting Factor” column identifies which constraint was smallest in the min(B, L, I, W) formula. Common possibilities include:

• 15-year rule: the account has not yet reached its 15-year anniversary, so the rollover is forced to zero.
• Seasoned balance: there is not enough eligible 529 balance to roll more, even though income and limits would allow it.
• Lifetime cap: you are approaching or have reached the $35,000 cumulative rollover maximum.
• Earned income: the beneficiary’s wages or self-employment income are not high enough to support a larger rollover plus direct contributions.
• Annual contribution limit: the IRS limit for the year is the binding constraint.

If a row shows an estimated rollover of zero, check the limiting factor description. Often this is because the account is not yet 15 years old, the beneficiary has no earned income left after planned contributions, or the lifetime cap has already been used.

Worked example

Consider a simplified scenario based on the default inputs:

• 529 account opened: September 1, 2008.
• Current 529 balance: $42,000.
• Contributions in the last 5 years: $9,000.
• Beneficiary earned income: $28,000 per year.
• Planned direct Roth contributions: $4,000 per year.
• Annual Roth contribution limit: $6,500.
• First rollover tax year modeled: 2025.
• Prior 529-to-Roth rollovers: $0.

Step by step for 2025:

1. 15-year rule: The account opened in 2008, so by 2025 it is well over 15 years old. Rollover is allowed, subject to other limits.
2. Seasoned balance B: S = 42,000, C = 9,000, R_prior = 0. The base seasoned balance is S − C = 33,000. With the simplified model, one-fifth of the recent contributions ($1,800) unlocks in the first year. That means roughly $34,800 is available, easily above the other constraints.
3. Lifetime cap L: Starting from $35,000 with no prior rollovers, the remaining capacity is L = 35,000.
4. Earned income room I: I = 28,000 − 4,000 = 24,000.
5. Annual limit W: W = 6,500.

The eligibility formula is:

R = min(B ≈ 34,800, L = 35,000, I = 24,000, W = 6,500)

In this example, the smallest value is the annual contribution limit, W = 6,500. The calculator would therefore show a 2025 rollover of about $6,500 and mark the limiting factor as “Annual contribution limit.” The remaining lifetime capacity after 2025 would be $28,500.

In later years, if income stayed high and the annual limit did not change, successive $6,500 rollovers would gradually reduce the lifetime capacity until the $35,000 cap became the limiting factor.

Comparison: different limiting factors in practice

Depending on your situation, different rules may bind first. The table below compares three common patterns at a glance.

How to interpret and use your results

When reviewing the output:

• Treat numbers as estimates: The schedule is designed to give order-of-magnitude guidance, not precise year-by-year compliance modeling.
• Look at the trend: Note how rollover capacity changes over time as the 5-year window advances and the lifetime cap is used.
• Consider college funding needs: Rolling money out of the 529 reduces what is available for education. Make sure any rollover strategy fits alongside tuition and other goals.
• Coordinate with other Roth contributions: If the beneficiary already contributes heavily to a Roth IRA, that may cap the rollover amount more quickly.

Before acting on any numbers, confirm the details with your 529 plan and a qualified tax advisor, especially if you are close to the limits or have complex circumstances.

Assumptions and limitations

This calculator uses a simplified model to keep the interface and results understandable. Important assumptions and limitations include:

• Simplified 5-year contribution treatment: The tool assumes recent contributions become eligible in equal slices over five years rather than tracking exact contribution dates and earnings.
• No day-level timing: It does not track whether individual contributions are just inside or outside the 5-year window based on exact calendar dates.
• Federal focus only: It does not account for state income tax treatment, state benefits, recapture rules, or plan-specific administrative requirements.
• Static limits and income: It treats earned income, planned Roth contributions, and the annual contribution limit as constant over the projection horizon unless you change the inputs.
• Single-beneficiary view: The model assumes a single beneficiary and a single 529 account; it does not aggregate or coordinate across multiple 529s.
• No investment return modeling: The 529 balance is treated as a snapshot; the tool does not project future market growth or losses.
• Rule stability: It assumes current SECURE 2.0 rules and contribution limits remain in place; future legislation or IRS guidance could change how rollovers work.

Because of these simplifications, your actual eligible rollover in any given year may differ from the estimates shown here.

Important disclaimer

This planner is for educational and illustrative purposes only. It does not provide tax, legal, or investment advice, and it does not guarantee eligibility for any particular rollover amount. 529-to-Roth rollovers involve nuanced rules and may have tax consequences depending on your state and specific plan.

Before initiating a rollover, review your 529 plan documents, check current IRS guidance, and consult a qualified tax professional or financial planner who can evaluate your full situation.

Next steps

• Experiment with different earned income levels and contribution limits to see how they change the limiting factor.
• Adjust the first rollover tax year to understand the impact of waiting versus starting as soon as the 15-year rule allows.
• Use the results as a starting point for a conversation with your advisor about coordinating education funding and long-term retirement savings for the beneficiary.