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Bill > HB1241


IN HB1241

IN HB1241
Roth IRA rollover of 529 account balance.


summary

Introduced
01/05/2026
In Committee
01/05/2026
Crossed Over
Passed
Dead
02/27/2026

Introduced Session

2026 Regular Session

Bill Summary

Roth IRA rollover of 529 account balance. Designates as a qualified withdrawal for Indiana529 plan (529 plan) purposes a withdrawal of funds from the 529 plan in order to make a contribution to a Roth IRA, pursuant and subject to the limitations of the federal SECURE 2.0 Act. Requires the Indiana education savings authority to coordinate with the treasurer of state in the administration of contributions to 529 plans.

AI Summary

This bill allows individuals to withdraw funds from their Indiana529 plan, which is a savings plan for education expenses, and contribute them to a Roth IRA (an individual retirement account with tax advantages) without penalty, provided these withdrawals are considered "qualified" under federal law, specifically the SECURE 2.0 Act. This means the money moved from the education savings account to the retirement account will not be subject to taxes or penalties as if it were a regular withdrawal. The bill also requires the Indiana education savings authority to work with the treasurer of state to manage contributions to these 529 plans.

Committee Categories

Budget and Finance

Sponsors (4)

Last Action

Representative Greene added as coauthor (on 01/12/2026)

bill text


bill summary

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bill summary

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