i know pretty much all the rules with the new act allowing a 529 to be converted to a Roth starting 2024. my question pertains to a small clause i read about needing to have earned income. heres my scenario in a nutshell
2010-2015 - worked a regular earned income job and contributed to a Roth during these years
2016-2024 - earn income with dividends, capital gains (no earned income)
2024 - opened a 529 for myself and contributed (no earned income)
2039 - (15 years later) - plan to convert 35K slowly to Roth (no earned income) lets assume the limits at this time are $8000 a year. lets assume current 529 value is 50k after all education paid for.
making these assumptions, will i be allowed to start converting to a Roth even though i have no earned income? some have told me yes. but that doesnt make alot of sense to me. if i had earned income of $8000 in 2039, dont i need to pay tax on that $8000? i thought the $8000 that i convert from 529 to Roth doesnt owe tax.
TIA!
2010-2015 - worked a regular earned income job and contributed to a Roth during these years
2016-2024 - earn income with dividends, capital gains (no earned income)
2024 - opened a 529 for myself and contributed (no earned income)
2039 - (15 years later) - plan to convert 35K slowly to Roth (no earned income) lets assume the limits at this time are $8000 a year. lets assume current 529 value is 50k after all education paid for.
making these assumptions, will i be allowed to start converting to a Roth even though i have no earned income? some have told me yes. but that doesnt make alot of sense to me. if i had earned income of $8000 in 2039, dont i need to pay tax on that $8000? i thought the $8000 that i convert from 529 to Roth doesnt owe tax.
TIA!
Statistics: Posted by jlucero — Mon Jan 22, 2024 6:55 pm — Replies 0 — Views 54