Robert Brokamp

There are a lot of restrictions around this, including that the account has to have been open for at least 15 years.

The amount that can be transferred in a single year cannot exceed that year's contribution limit for an IRA.

The total amount that can be transferred is $35,000, and there are many other rules, so do your research before trying this.

However, if you meet all the requirements, the transfer is free of federal taxes.

But what about state taxes?

Well, a recent article from Ian Berger at irahelp.com provided some clarification.

Residents of the nine states that don't levy an income tax have nothing to worry about.

30 states have decided to go along with the federal rules.

Three states, Colorado, Missouri, and New Jersey, haven't yet said one way or the other.

California is the only state that has said a 529 to Roth transfer will not be tax-free on the state level.

It will be subject to income tax and an additional 2.5% levy.

Also of note, some states allow residents to deduct contributions to 529s, but if you live in Indiana, Louisiana, Massachusetts, Michigan, Minnesota, Utah, or Vermont, you'll have to pay back that deduction if the money is transferred to a Roth IRA.

What all this demonstrates is that if you live in a state that levies an income tax, check to see whether it will conform to any new tax laws passed by Uncle Sam, especially in light of all the new tax breaks in the one big beautiful bill passed in July.

Now, the numbers of the week, and they are 2.8% to 4.8%.

which is what Vanguard expects as the range of annualized returns from the US stock market over the next decade, according to a recent report, and down a half a percent from a few months ago.

They expect 3.8% to 4.8% from US bonds, so just about the same amount, if not a little better.

The low expectations for US stocks stem from high valuations that just keep getting higher.

Vanguard expects somewhat better returns from small caps, value stocks, and international stocks, but nothing near double digits.

A recent report from JP Morgan Asset Management has a somewhat more optimistic take, with projected annualized returns of 6.7% from U.S.

stocks over the next 10 to 15 years, and also slightly higher returns from international stocks and around 5% from bonds.