New 529 Plan Rules 2025

New 529 Plan Rules 2025. Key rules apply to the conversion: “starting in 2024, the secure 2.0 act allows savers to roll unused 529 funds into the beneficiary’s roth ira without a tax penalty,” says lawrence sprung, author of financial.

The 529 plan must be open for at least 15 years before it can be rolled over into a roth ira and there’s a $35,000 lifetime limit on rollovers. In 2024, gifts of up to $18,000 a year for an individual and $36,000 for a couple are not taxed.