STATEHOUSE (Jan. 15, 2026) – State Rep. Dave Hall (R-Norman) recently introduced legislation to give families more flexibility with their education savings.
Hall said House Bill 1241 would allow unused Indiana 529 funds to be rolled into a Roth IRA under federal limits, providing options and flexibility to ensure families keep the money they have saved for education.
"Parents across Indiana use 529 accounts because they want their kids to have opportunities. Plans change and some students win scholarships, others choose trades or the military and some finish school with money left over," Hall said. "House Bill 1241 allows those unused dollars to roll into a Roth IRA so they can help build their retirement. It's flexible, responsible and helps Hoosier families plan with more confidence."
Hall said the changes would mirror the rules in the federal SECURE 2.0 Act with a lifetime cap of $35,000 and limited to the annual IRA contribution limits. The 529 account must also be open for 15 years and contributions made in the last five years wouldn't qualify.
HB 1241 was referred to the House Ways and Means Committee. If passed out of committee, it will move to the full House of Representatives for further consideration.
To learn more about HB 1241 and other bills this session, visit iga.in.gov.
-30-
State Rep. Dave Hall (R-Norman) represents House District 62,
which includes all of Brown County, and portions of Monroe and Jackson counties.
Click here to download a high-resolution photo.
