529 to ROTH Rollover

[RWG1950]

Grandparents (as owners) established 529's for grandkids over 15 years ago. Kids have finished school & will no longer need the remaining funds.
I've Heard that under SECURE 2.0, it is possible to rollover the remaining funds (about $11-K) into the owner-grandparent ROTH IRA account.
Do I understand this correctly ? If true, I assume they would pay tax on any account appreciation remaining - if rolled over.
Must the grandparent have W-2 income for the year of the rollover or would it be treated something along the lines of an IRA conversion ?
Thanks for comments.

[Lion]

Starting in 2024, the beneficiary of a 529 Plan can rollover certain amounts to the beneficiary's Roth IRA. See SECURE 2.0 for the details. But here's a quick overview by the Journal of Accountancy: https://www.journalofaccountancy.com...-roth-ira.html

[JON]

The Grandparents are not the beneficiary.

[terryats]

As Jon pointed out the funds can go into the grandchild's ROTH starting in 2024. The owners can withdraw principle, tax and penalty free at anytime. there are some exceptions to the 10% penalty, and you can research that.

[Rapid Robert]

"The owners can withdraw principle, tax and penalty free at anytime."

You weren't clear, but it is not the same as the rule for Roth IRAs. All distributions must include a pro rata share of earnings, which are not tax and penalty free if not used for qualified education expenses.. See Pub 970.

[terryats]

From pub 570. "The part of a distribution representing the amount paid or contributed to a QTP doesn't have to be included in income. This is a return of the investment in the plan". If you receive a 1099Q it will include a portion of principle and earnings, but principle is always penally, and tax free

[Rapid Robert]

Like I said, you weren't clear in your initial statement. Thank you for agreeing with my clarification.