Posts
/ #POST-001342
REDDIT
Is a 529 a secret backdoor for Roth IRA even if you have no plans for education expenses?
My research on 529 indicates that The SECURE Act of 2022 permits rolling over up to $35,000 of unspent funds in a 529 account into a Roth IRA account. The account must be at least 15 years old to qualify.
I don't have kids, I don't have college loans left, or any planned education costs. I was thinking of taking advantage of the tax free growth anyways. I could put $10k in today and assuming 7% annual growth for 15 years it would grow to $27k. I could then convert it all over to my ROTH IRA.
I haven't heard of people talking about this, only to use it for planned education expenses. Am I missing something or did I find a secret backdoor into ROTH IRA?