S. 5550Senate119th Congress (2025-2027)In Committee

529 Retirement Enhancement Act of 2026

A bill to amend the Internal Revenue Code of 1986 to eliminate the aggregate limitation on rollovers from a 529 program to a Roth IRA.

AI-Generated Summary

Updated October 3, 2026 at 4:21 AM UTC

The 529 Retirement Enhancement Act of 2026 changes tax rules so that people can move money from a 529 college‑savings plan into a Roth IRA without a total cap on how much can be rolled over over time. The change removes the previous overall limit and keeps only an annual limit. It affects anyone who has a 529 plan and wants to transfer those funds into a Roth IRA.

Key Provisions

Remove the aggregate (total‑over‑time) limit on 529‑to‑Roth IRA rollovers, leaving only an annual limit.
Apply the new rule to distributions made in tax years beginning after the law’s enactment.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

September 24, 2026

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SenateIntro Referral

Introduced in Senate

September 24, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

September 24, 2026

Bill Text

Latest available legislative text

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Introduced in SenateIssued September 24, 2026

119th CONGRESS

2d Session

S. 5550

IN THE SENATE OF THE UNITED STATES

September 24, 2026

Mr. Cruz (for himself and Ms. Blunt Rochester) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to eliminate the aggregate limitation on rollovers from a 529 program to a Roth IRA.

Short title

This Act may be cited as the 529 Retirement Enhancement Act of 2026.

Elimination of aggregate limitation on 529 rollovers to Roth IRA

(a)

In general

Clause (ii) of section 529(c)(3)(E) of the Internal Revenue Code of 1986 is amended—

(1)

by striking subclause (II), and

(2)

by striking Limitations.— and all that follows through Clause (i) shall only apply and inserting Annual limitation.—Clause (i) shall only apply.

(b)

Effective date

The amendments made by this section shall apply to distributions made in taxable years beginning after the date of the enactment of this Act.