529-to-Roth IRA Rollover Rules in 2026: Five Questions That Help Determine Whether You Qualify

Leftover 529 funds can now be rolled into a Roth IRA, but strict rules may limit who qualifies. Panchenko Vladimir/ShutterstockAfter funding a 529 college savings account for years, you realize there is money left over. Maybe your grandchild graduated early, earned a scholarship that covered more than expected, or decided college was not for them. A federal rule now lets you move that leftover balance into a Roth IRA, tax-free. It may sound too good to be true, and for some account holders, it is.The provision is real, but the eligibility window is narrow, and several states have created a tax trap that most account holders never see coming.