Bill removes lifetime cap on moving school savings to retirement accounts
S. 5550 — 529 Retirement Enhancement Act of 2026 · Filed by Ted Cruz (R-TX) · 1 cosponsor · Introduced Sep 24, 2026 · Referred to committee
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What it does
This bill lets people move money from a 529 school savings plan into a Roth IRA. Right now, tax law caps total moves at $35,000 per person for life. The bill removes that cap. It keeps an annual limit on yearly moves. People can now move unused school savings into retirement accounts with no tax on growth.
Who it affects
People who save for school in 529 plans gain more choices. They can move extra money into retirement savings without hitting a lifetime cap. Companies that run 529 plans and retirement accounts may see more work.
One thing to notice
The bill removes the lifetime cap but does not say what the annual limit is. The real impact depends on how much money people can move each year.
From the analysis of the bill text, linked under Primary records below.
Where it stands
1 cosponsor: 1 Democrats.
- Sep 24, 2026 — Introduced · Congress.gov: “Introduced in Senate”
- Sep 24, 2026 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Words to know
- Roth IRA — A retirement account where money grows tax-free and withdrawals are tax-free.
- lifetime cap — A limit on the total amount a person can move over their whole life.
- annual limit — A limit on how much money can be moved in one year.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (598 characters) on Oct 3, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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