529 pa

Forum|Forum|1 year ago
June 26, 2024
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If I switch beneficiaries from my 529, does that restart the clock for 529 for waiting15 years to transfer to a roth ira or is it null and void for roth ira?

Ask the Experts - Retirement II - June 2024

TeriH

Good question!

I actually did this yesterday. And I most assuredly have switched from my sons names to mine as the account holder and beneficiary. They stated, it was unclear, but at present they were following the guidance and made the distribution. All other conditions were satisfied.

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jad56061Author

So I have a question. If I have 150k in the 529 account and I keep changing beneficiaries to family members to donate to their 529, is that allowed? Does the clock reset every 15 years? Id love to hear your thoughts since you did it! This is interesting.

TeriH

well the kicker is you can only get out $35k , at present. So, if you've overachieved and have an excess of $150k you are going to be severely limited to just $35k. Unless, ... you can somehow split the $150k between 5 accounts, and then wait the 15 years.

I'm not seeing another way around that.

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