Georgia Taxpayers Have New Option to Rollover Path2College 529 Plan Funds that Aren’t Utilized for Education

published January 16, 2024

Atlanta – Georgia taxpayers who don’t use all the money saved in the state’s Path2College 529 Plan for education-related expenses now have another option for how to utilize the funds without penalty. Effective January 1, 2024 some of the funds may be eligible to be rolled over into a Roth IRA.

The SECURE 2.0 Act of 2022 created this option for those saving in 529 Plans, and while this added feature provides more flexibility, there are limitations associated with the option. For example, rollovers are only permitted to a Roth IRA in the name of the 529 account’s beneficiary (the child/student). The 529 account must be in existence for at least 15 years, and no contributions or earnings for the last five years may be rolled over. The lifetime limit for rollovers to a Roth is $35,000. Rollovers will not be subject to the earnings limitation but will be limited to the annual maximum contribution limit, which for 2024 is $7,000.

Those considering rolling funds over to a Roth IRA should investigate the limitations and rules, which can be found on the Path2College website www.Path2College529.com. Account owners should also consult with a tax professional if they are considering this option.

To request a rollover to a Roth IRA, first contact your Roth IRA administrator to determine their ability and requirements to receive the rollover. Then, submit any Roth IRA forms required from your Roth IRA administrator along with the Path2College 529 Plan Rollover to Roth IRA form. Forms and more information can be found on the Path2College website in the withdrawals section under FAQs.

For more information about the Path2College 529 Plan, to open a college savings account or for questions about the new Roth IRA rollover option, please visit www.Path2College529.com or call (877) 424-4377.

To learn more about Georgia's Path2College 529 Plan, its investment objectives, risks, charges and expenses see the Plan Description at path2college529.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Path2College 529 Plan.

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