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119-s-5550119th CongressWALLET

529 Retirement Enhancement Act of 2026

Sponsored By: Senator Cruz, Ted [R-TX]

Introduced

Summary

Eliminates the lifetime cap on rolling 529 funds into Roth IRAs. It replaces the aggregate (lifetime) limit with only the existing "annual limitation" on rollovers, widening how much 529 money can move to Roth IRAs over time.

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  • Families with leftover education savings can shift more unused 529 balances into Roth IRAs across years, creating a bigger route to retirement savings.
  • Retirement savers and beneficiaries gain greater access to tax-free retirement growth for prior education savings, subject only to the yearly rollover rules and existing Roth IRA eligibility.
  • Plan administrators and financial advisers must track annual rollover limits instead of a lifetime total and update guidance and paperwork. The change applies to distributions in taxable years beginning after enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Easier rollovers from 529 to Roth

You would be able to roll money from a 529 college savings plan into a Roth IRA without a lifetime cap. The bill would keep the existing annual rollover limit that applies each taxable year. It would apply to rollovers made in taxable years beginning after the date of enactment.

Sponsors & CoSponsors

Sponsor

Cruz, Ted [R-TX]

TX • R

Cosponsors

  • Sen. Blunt Rochester, Lisa [D-DE]

    DE • D

    Sponsored 9/24/2026

Roll Call Votes

No roll call votes available for this bill.

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