KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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HB1241 • 2026

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Education Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Dave Hall
Last action
2026-01-12
Official status
Introduced House Bill (H)
Effective date
Not listed

Plain English Breakdown

The official source material does not provide details on the consequences for exceeding withdrawal limits or specifying exact amounts that can be withdrawn.

Roth IRA Rollover from 529 Plans

This bill allows people to withdraw money from their Indiana 529 college savings plan and put it into a Roth IRA, following federal SECURE 2.0 Act rules.

What This Bill Does

  • Designates withdrawing funds from an Indiana 529 plan for contributing to a Roth IRA as a qualified withdrawal under the SECURE 2.0 Act.

Who It Names or Affects

  • People who have money in an Indiana 529 college savings plan
  • The Indiana education savings authority

Terms To Know

Roth IRA
A type of retirement account where people can save money after taxes and take it out in the future without paying more taxes.
529 plan
A savings program that helps families set aside money for education expenses, like college tuition.

Limits and Unknowns

  • The bill does not specify how much money can be withdrawn from a 529 plan to contribute to a Roth IRA.
  • It is unclear what the consequences are if someone withdraws more than allowed under federal rules.

Bill History

  1. 2026-01-12 House

    Representative Greene added as coauthor

  2. 2026-01-08 House

    Representative O'Brien added as coauthor

  3. 2026-01-05 House

    Authored by Representative Hall

  4. 2026-01-05 House

    Coauthored by Representative Pierce K

  5. 2026-01-05 House

    First reading: referred to Committee on Ways and Means

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Roth IRA rollover of 529 account balance.

Current Bill Text

Read the full stored bill text 
A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Roth IRA rollover of 529 account balance.

Designates as a qualified withdrawal for Indiana529 plan (529 plan) purposes a withdrawal of funds from the 529 plan in order to make a contribution to a Roth IRA, pursuant and subject to the limitations of the federal SECURE 2.0 Act. Requires the Indiana education savings authority to coordinate with the treasurer of state in the administration of contributions to 529 plans.