IndianaIndiana would treat some transfers to Roth IRAs as qualified withdrawals
Starting with 2027 tax years, transfers from Indiana529 college savings accounts to Roth retirement accounts would count as qualified withdrawals if they meet federal limits.
What it does
For tax years starting in 2027, transfers from Indiana529 college savings accounts to Roth retirement accounts would count as qualified withdrawals if they meet federal limits.
Starting January 1, 2027, the Indiana education savings authority would work with the state treasurer to administer Indiana529 tax credit rules.
Argument forPeople who meet federal limits could move college savings into retirement accounts without repaying Indiana529 tax credits for that transfer.
Argument againstMoving savings to retirement accounts could leave less in an Indiana529 account for a beneficiary’s later education costs.
More detail
Indiana would count certain transfers from Indiana529 accounts to Roth IRAs as qualified withdrawals. The rule covers withdrawals from Indiana529 college savings accounts used to contribute to Roth retirement accounts. The transfer must follow the federal SECURE 2.0 Act’s limits. The rule would apply to tax years beginning on or after January 1, 2027.
The Indiana education savings authority would coordinate with the state treasurer. Their work would cover administration of Indiana529 tax credit rules. The coordination requirement would take effect January 1, 2027.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jan 12Representative Greene added as coauthorLatest
- Jan 8Representative O'Brien added as coauthor
- Jan 5Coauthored by Representative Pierce K
- Jan 5Authored by Representative Hall
- Jan 5First reading: referred to Committee on Ways and MeansIntroduced
Taxes & BudgetEducation