Do I need to file an amendment to record 1099-Q forms for a 529 rollover?

Forum|Forum|7 years ago
June 3, 2019
1 reply
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In 2017, we rolled over our NJBEST 529 account completely into a NY 529 plan. We received 1099-Q forms for this rollover. We filed our 2017 tax returns last week but forgot to include the 1099-Q forms.

I went through the TurboTax amend tax return process and it states that it had no effect on our taxes. I know that 529 rollovers are not taxable but not sure how to proceed. Are we required to file an amendment regardless?

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Best answer by MinhT1

A 529 plan rollover is not taxable and has no effect on your tax return. You do not need to amend your tax return. Just keep that form 1099-Q in your tax records for at least 3 years.

MinhT1Answer

Level 15

A 529 plan rollover is not taxable and has no effect on your tax return. You do not need to amend your tax return. Just keep that form 1099-Q in your tax records for at least 3 years.

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AyoOAuthor

Level 2

Thank you for the quick response, TurboTaxMinhT. Much appreciated.

Irene2805

Level 15

No - The 529 withdrawal does not have to be in the child's name.

According to the IRS:

Rollovers and transfers from section 529 plans

Families may now roll over funds from a 529 plan to another family member’s ABLE account.
The ABLE account must be for the same beneficiary as the 529 account or for a member of the same family as the 529 account holder. Rollovers from a section 529 plan count toward the annual contribution limit.
- Here is an example: the $15,000 annual contribution limit would be met by parents contributing $10,000 to their child’s ABLE account and rolling over $5,000 from a 529 plan to the same ABLE account.

States can offer ABLE accounts to help people who become disabled before age 26 and their families save and pay for disability-related expenses. These expenses include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology and personal support services. Though contributions aren’t deductible for Federal tax purposes, distributions, including earnings, are tax-free to the beneficiary, as long as they are used to pay qualified disability expenses.

For more information click on this link: Tax reform affects ABLE accounts, saver’s credit, 529 rollovers