Education
|
Posted on February 9th, 2024
Rollovers can’t exceed the annual Roth contribution limit. Based on the current $6,500 annual limit, it would take six years to roll over the $35,000 lifetime limit.
The beneficiary of the 529 plan must also be the owner of the Roth IRA and must have earned income at least equal to the amount of the rollover.
While the IRS is likely going to issue further guidance on this new law, that’s no reason to wait to open a Roth IRA for your child. It is advantageous to start a child's Roth IRA and contribute to it if they have earnings (like a high school job). This will get them started on their retirement savings at a time when their personal income tax rate is likely to be low.
(615) 517-2064 | 2020 Lindell Ave, Studio 10, Nashville, TN 37203
Raise Financial, LLC, a Tennessee Limited Liability Company, is an internet based investment advisory service. Our internet-based investment advisory services are designed to assist clients in personal investment and are not intended to provide comprehensive tax advice or financial planning. Our services are available to U.S. residents only. This website shall not be considered a solicitation or offering for any service or product to any person in any jurisdiction where such solicitation or offer would be unlawful.
Please consider your objectives and tax implications before investing with Raise Financial, LLC. All investments and securities involve risk. Raise Financial does not provide brokerage services.