Solomon, age 50, established a Sec. 529 savings plan 16 years ago to save for college expenses for his son, Martin. Solomon made total contributions to the plan of $60,000 over the course of ten years, then stopped making contributions during Martin’s senior year of high school when the account value was $135,000. Due to Martin’s hard work, he received several scholarships to help cover the cost of college. Martin graduated from college with a bachelor’s degree and does not intend to further his education. There is currently $50,000 remaining in the 529 plan. Which of the following is true regarding their ability to roll funds from the 529 plan to a Roth IRA in 2024?
Question 6 options:
The remaining $50,000 can be rolled over to Solomon's Roth IRA without tax or penalty in 2024.
Solomon and Martin are not eligible to roll funds from the 529 plan to a Roth IRA in 2024.
An amount up to the annual IRA contribution limit can be rolled over to Martin's Roth IRA in 2024.
$35,000 can be rolled over to Martin's Roth IRA in 2024.