medium · Certified Financial Planner Psychology

The Wojcik family has a 529 plan for their daughter that has been open for 16 years. They wish to roll over the remaining $10,000 balance to their daughter's Roth IRA in 2026.

Which of the following is a binding constraint on this rollover?

  1. The annual rollover is limited to the yearly IRA contribution limit ($7,500 for 2026).
  2. The rollover will be subject to a 10% penalty because it is a non-qualified distribution.
  3. The rollover is only permitted if the daughter is under age 18. under the facts given in the stem
  4. The rollover is prohibited because the total account value exceeds $150,000.

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