What happens if your child doesn’t use all of their 529 college savings?
The SECURE 2.0 Act provides a powerful answer: up to $35,000 per beneficiary can be rolled tax-free from a 529 into a Roth IRA, if the rules are met.
✅ The 529 must be open at least 15 years
✅ Only contributions older than 5 years (and earnings) qualify
✅ The beneficiary must have earned income
✅ Annual Roth IRA limits apply → $7,000 (2025) or $7,500 (2026) | higher if 50+
This makes 529s even more attractive — especially for families who want flexibility. If a child doesn’t need the funds for education, the money can still jumpstart retirement savings and compound for decades.
Bottom line: 529s are no longer just for college — they’re a flexible wealth-building tool when life takes a different path.
