US 529 College Savings Calculator and Roth IRA Rollover

529 plan: college savings and rolling leftovers into a Roth IRA

A US 529 plan grows college savings with no tax on gains when they pay qualified education costs, and many states let you deduct contributions from state tax. Since 2024, the SECURE 2.0 Act allows up to $35,000 of leftover funds, over the beneficiary's lifetime, to be moved to their Roth IRA in capped annual amounts. The tool projects the balance, the tax advantage and that leftover.

How the tool calculates

• 529 balance: starting amount and monthly contribution compounded monthly at the annual return ÷ 12.
• State tax saving = annual contributions × state rate × number of years (the starting amount is not counted).
• Taxable account benchmark: the same savings compounded at 82% of the return, to reflect tax on dividends and gains.
• Leftover = balance − education costs; up to $35,000 is shown as transferable to the Roth IRA and the rest as a non-qualified withdrawal.

Example (default values)

$10,000 to start, $400 a month for 15 years at 7%, 5% state tax, $120,000 of costs. The 529 reaches $155,274 for $82,000 contributed. The cumulative state tax saving is $3,600 and the taxable account would have reached only $137,391: a total advantage of $21,483. After costs, $35,274 remains: $35,000 transferable to the Roth IRA and $274 as a non-qualified withdrawal, whose earnings would be taxed and generally hit with an extra 10%.

What the tool simplifies

• Rollovers are capped each year at the IRA contribution limit ($7,500 in 2026, minus other IRA contributions that year), so $35,000 takes about five years, not one transfer.
• The account must have been open for at least 15 years, and contributions from the last five years (and their earnings) are excluded.
• Many states cap the deduction and some offer none; the tool applies the rate to all contributions.
• Constant return. Estimate only, not financial advice.

Sources and dates: 529-to-Roth IRA rollover under the SECURE 2.0 Act for distributions after 31/12/2023 ($35,000 lifetime cap, annual IRA limit, 15-year account, last-five-years exclusion), per IRS Publication 590-A and Topic 313; $7,500 IRA limit for 2026, IRS release IR-2025-111 of 13/11/2025 (checked on 14/10/2026).

Frequently Asked Questions

How much can be rolled from a 529 plan into a Roth IRA?

$35,000 at most over the beneficiary's lifetime, and each year no more than the IRA contribution limit, $7,500 in 2026 minus their other IRA contributions. Moving the full $35,000 therefore takes about five years; the tool shows the total in one go.

What are the conditions for a 529-to-Roth IRA rollover?

The 529 must have been open for at least 15 years, the Roth IRA must belong to the 529 beneficiary, and the money must move by direct trustee-to-trustee transfer. Contributions made in the last five years, and their earnings, cannot be rolled over.

What tax advantage does a 529 plan offer over a regular account?

In the tool, with $10,000 then $400 a month for 15 years at 7%, the 529 reaches $155,274 against $137,391 for a taxable account modelled at 82% of the return. Adding $3,600 of state tax savings at 5%, the advantage comes to $21,483.

What happens to money left in the 529 beyond $35,000?

It can pay other qualified expenses or move to another family member as beneficiary. If withdrawn for anything else, the earnings portion is taxed and generally subject to an extra 10%. The tool shows it as a "non-qualified balance" without computing that tax.

Is this tool really free?

Yes, all tools on Kristools are 100% free and accessible without registration.

Is my data protected?

Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.