In this video, we will walk you through how to transfer funds from an existing 529 account into a Roth IRA.
Transcript:
In this video, I’ll walk you through how to model rolling over an existing 529 account into a Roth IRA.
In this example, I already have both account types entered into the client’s plan, so we’ll begin by creating the transfer between the two accounts.
Start by clicking the plus button in the bottom-right corner and selecting Transfers.
Next, choose the client’s 529 account as the source account and the Roth IRA as the destination account.
For the transfer amount, I’m going to select All Available.
You also have the option to enter a specific transfer amount if needed, but for this example we’ll transfer the full available balance.
Next, we’ll set the timing for when the rollover should occur.
Click into the Timing section and double-click on the year in the plan where you would like the transfer to take place.
Give the event a name and set it as the start event for the transfer.
Then click Done to save.
To confirm that the software is processing the rollover as expected, we can go to Year View and navigate to the Investments section.
Scroll over to the year where the transfer is scheduled to occur.
Here, we can verify that funds are being withdrawn from the 529 account.
We can also confirm that those same funds are being contributed into the Roth IRA, where they will continue growing within the plan from that point forward.
I hope this was helpful.
If you have any questions, you can click on your client’s name in the top-right corner, select Request Support, enter your question, and share client access with our support team.
Thanks for listening!