How can I move 529 funds into a Roth IRA?

Beginning January 1, 2024, in accordance with revisions made by the SECURE Act 2.0, rollovers will be permitted from a 529 plan account to a Roth IRA without incurring federal income tax or penalties, subject to certain conditions, including the following: 

• The 529 plan account must be open for 15 or more years. 
• Contributions and associated earnings that you transfer to the Roth IRA must be in the 529 plan account for more than 5 years. 
• A lifetime maximum amount of $35,000 per designated beneficiary may be rolled over from 529 plan accounts to Roth IRAs. 
• 529 plan assets can only be rolled over into a Roth IRA maintained for the benefit of the designated beneficiary on the 529 plan account. 
• 529 plan assets must be sent directly in a trustee to trustee transfer to the Roth IRA. 
• The Roth IRA rollover is subject to the applicable contribution limits for the taxable year. 

Depending on your unique tax situation, you may qualify to move funds from a 529 account into a Roth IRA account for the same individual/beneficiary. Wealthfront cannot advise you as to your eligibility or the tax implications for this type of transfer. To determine if you are eligible to, please consult with a tax professional. 

1. If you would like to move funds from a Wealthfront 529 to a Wealthfront Roth IRA OR to a non-Wealthfront Roth IRA, please complete the 529 Distribution Request for Direct Rollover to Roth IRA form and upload it to your Wealthfront profile using your Document uploader on Wealthfront.com. 
2. If you would like to move funds from a non-Wealthfront 529 account into a Wealthfront Roth IRA, please provide the below information to your current 529 custodian to have a check mailed for deposit:

Make the check payable to: Wealthfront Brokerage

Mail the check to:  Wealthfront Brokerage LLC

P.O. Box 930164

ATLANTA, GA 31193-0164

Lastly, please make sure that the memo/note line of the check mentions your Wealthfront Roth IRA account number. If the current custodian of the 529 cannot add the account number for you, you can handwrite this in the memo field or under the payable to section. 

Where can I find my Wealthfront Roth IRA or 529 account number?

You can view your account number by logging into our website > clicking your name in the upper right corner > Settings > and selecting the title of your account on the menu to the left.

How long does a 529 Rollover to Roth IRA take?

Rollovers from a Wealthfront 529 Account to a Roth IRA typically takes 3 weeks. 

How will you handle my check when it arrives at Wealthfront?

Most checks arrive within 2 weeks once it has been sent by the other institution. Once the check is received, we’ll deposit it and automatically invest it according to your selected Roth IRA allocation. We’ll send you an email when this happens.