Eligibility Rules
The individual receiving the Roth IRA rollover must be this person.
Who is the designated beneficiary?
The lifetime rollover limit from a 529 to a Roth IRA.
What is $35,000?
This form reports money leaving the 529 plan.
What is Form 1099-Q?
The rollover is federally tax-free.
What is True?
A client says, "My 529 was opened 10 years ago and I'd like a rollover."
What is the first issue? The account has not met the 15-year requirement.
A 529 account must be open for this many years before a Roth IRA rollover is permitted.
What is 15 years?
True or False and why: A client may move $35,000 in one transaction.
What is False? Annual Roth contribution limits still apply.
This form reports the qualified rollover contribution to the Roth IRA.
What is Form 5498?
The rollover is subject to a federal penalty.
What is False?
A client's Roth IRA rejects the rollover check. What may happen next?
The check can be stopped and funds may be returned to the original beneficiary account as a new contribution through the documented process.
Contributions and earnings made during this period cannot be rolled into a Roth IRA.
What is the last 5 years?
These limits still apply even though the transaction is a rollover.
What are annual Roth IRA contribution limits?
This person receives the 1099-Q.
Who is the beneficiary?
State tax treatment may vary.
What is True?
Even after returned funds are redeposited, this tax form will still be issued.
What is Form 1099-Q?
The rollover amount plus annual IRA contributions cannot exceed this.
What is the beneficiary's earned income?
A client earns $4,000 this year. This is the maximum rollover amount they may complete for that year.
What is $4,000?
Box 4 on the tax form identifies this type of movement.
What is a trustee-to-trustee transfer?
The parent can move 529 funds to their own Roth IRA.
What is False? The Roth IRA must be in the beneficiary's name.
Account owners have this amount of time from the check date to recontribute returned funds.
What is 60 days?
This type of Roth account cannot receive a 529-to-Roth rollover.
What is a TA account?
DAILY DOUBLE
A client wants to roll over the entire $35,000 lifetime limit today.
no.
Because annual Roth contribution limits restrict how much can be rolled over in a single year.
Clients should consult this professional regarding reporting requirements.
Who is a tax professional?
Recent contributions from the last 5 years are eligible for rollover.
What is False?
Which team should be contacted when a client attempts to roll over more than annual Roth contribution limits and an adjustment may be needed?
Who is Service Recovery?