Beginning on January 1, 2024, the Oregon College Savings Plan will be able to process requests for tax-free rollovers from a 529 account to a Roth IRA account. Simply fill out this form and submit your request.
Yes, you can.
If you make your rollover request and subsequent Roth IRA contribution before the 2023 filing deadline – Apr 15, 2024 – you may be permitted to elect to have the rollover contribution count toward the Prior Year (2023). This rule has yet to be confirmed by the IRS, and you should speak with a qualified tax professional prior to making such an election.
The Oregon College Savings Plan does not currently have guidance from the IRS on whether adjustments, such as account owner transfers, beneficiary changes, or rollovers between 529 plans may impact the 15-year requirement for how long your 529 account must have been open to qualify for a tax-free rollover. A collaboration of state-administered college savings programs submitted a letter to the IRS in September 2023 seeking guidance on these issues, but rules have not yet been confirmed by the IRS. You should speak with a qualified tax professional prior to making a 529-to-Roth IRA rollover.
The beneficiary of the Oregon College Savings Plan account/Roth IRA owner, will be held to earned income requirements when performing a 529-to-Roth IRA rollover. The income cap, however, does not apply. The 529 beneficiary/Roth IRA owner is best suited to determine eligibility in consultation with their financial or tax advisor.
Yes, beginning on January 1, 2024, you can make a tax-free rollover from your Oregon College Savings Plan account to your OregonSaves account.
There is no beneficiary age requirement, however, the beneficiary of the Oregon College Savings Plan account must be the same as the owner of the Roth IRA account.
Rollover amounts are subject to the annual contribution limits applicable to Roth IRAs. These limits are set by the IRS and may change annually. The 2024 total contribution limit is $7,000 and includes both contributions and rollovers. Over a lifetime, you may rollover up to $35,000 per beneficiary tax-free.
Funds contributed to an Oregon College Savings Plan account more than five years before the requested rollover date (and the earnings on those contributions) can be rolled over tax-free.
Yes, beginning on January 1, 2024. The rollover must be to a Roth IRA account in the name of the Oregon College Savings Plan (OCSP) beneficiary, not in the name of the account owner/participant. In addition, the OCSP account must have been open for a minimum of 15 years prior to the rollover to qualify as tax-free.
Important Note: A 529-to-Roth IRA rollover may have tax consequences. The 529 plan participant/account owner and 529 plan account designated beneficiary/Roth IRA owner are solely responsible for complying with all relevant IRS Rules, including any guidance released by the IRS in the future. You should speak with a qualified tax professional prior to making a 529-to-Roth IRA Rollover.
No. This is not considered a rollover. There are different tax implications depending on the type of retirement account you wish to withdraw from. Consult with your tax advisor for more information.
Yes, there is a $25 fee for any rollovers or fund transfers out of the plan.
Yep! A specific ABLE provision was included in the tax bill signed into law at the end of 2017. Money from an Oregon College Savings Plan account can now be rolled over into a beneficiary’s (or eligible family member’s) ABLE account without being penalized. There is a $15,000 rollover limit (minus the ABLE contributions already made during the current year).
You can find the appropriate 529 College Savings to ABLE Rollover Form here.
We'd be sorry to see you go! You can choose to roll over part or all of the funds in your Oregon College Savings Plan account into another 529 plan by filling out a rollover form from your new 529 College Savings Plan. Keep in mind that if you roll over your entire account balance, your Oregon College Savings Plan account will still remain open until you decide to close it.
You can make one rollover in a 12-month period without being taxed. And note, there is a $25 rollover fee.
It’s easy. Just download and complete our Rollover Form (PDF). Remember, you can transfer funds from another 529 College Savings Plan into an Oregon College Savings Plan account without incurring any federal income tax if you do so within a 12-month period and if the funds are for the same beneficiary or a family member. Also, worth noting, the plan from which you are transferring funds may have different features and fees, so it’s best to consult your tax advisor and your other 529 College Savings Plan manager before you initiate your rollover.
