AZ529 account owners may transfer money to Roth IRAs

An account owner may transfer all or part of an AZ529 account to a Roth IRA that meets federal requirements. The Roth IRA must belong to the account's designated beneficiary. The AZ529 account must have been maintained for the beneficiary for at least 15 years. Transferred money must come from contributions made at least five years before the transfer and earnings on those contributions. The transfer and the beneficiary's other Roth IRA contributions in the same year may not exceed the annual Roth IRA contribution limit. The total transferred from AZ529 accounts to Roth IRAs for the beneficiary may not exceed $35,000. The 15-year and five-year periods are measured before the transfer date; the annual contribution limit applies in each transfer year.

An AZ529 account may pay up to $20,000 in total for the designated beneficiary's tuition at a public, private or religious elementary or secondary school. The limit applies to qualified school tuition for the account's designated beneficiary under federal tax law. The withdrawal must follow the plan's rules. A separate limit of up to $10,000 applies to qualified education loan principal or interest for the beneficiary or the beneficiary's brother, sister, stepbrother or stepsister. The $10,000 loan limit is reduced by qualifying loan withdrawals made in earlier tax years. The school-tuition limit is stated as an aggregate amount, and the loan limit accounts for withdrawals in all prior tax years.

An account owner may transfer all or part of an AZ529 account to an ABLE account under federal law. The AZ529 account's designated beneficiary must be the ABLE account's designated beneficiary or a family member of that beneficiary. The transfer is made at the direction of the account owner. The supplied text does not state a start date or end date for this transfer provision.