Indiana HB1241 allows rollover of 529 account balance to Roth IRA, subject to federal SECURE 2.0 Act limits.

Indiana HB1241 amends the state tax code to designate withdrawals from an Indiana529 plan to contribute to a Roth IRA as qualified withdrawals, subject to the limitations of the federal SECURE 2.0 Act. This provision applies to taxable years beginning after December 31, 2026. The bill also requires the Indiana education savings authority to coordinate with the state treasurer in administering this new rule. The changes are effective from July 1, 2026, and expire on June 30, 2029.

Indiana HB1241 allows rollover of 529 account balance to Roth IRA, subject to federal SECURE 2.0 Act limits.

Indiana HB1241 amends the state tax code to designate withdrawals from an Indiana529 plan to contribute to a Roth IRA as qualified withdrawals, subject to the limitations of the federal SECURE 2.0 Act. This provision applies to taxable years beginning after December 31, 2026. The bill also requires the Indiana education savings authority to coordinate with the state treasurer in administering this new rule. The changes are effective from July 1, 2026, and expire on June 30, 2029.