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Level 3

Question

1099-Q box 6 question is worded very confusing

Forum|Forum|4 months ago
February 1, 2026
6 replies
0 views

the step-by-step form for the 1099-Q brings you to Box 6. The question is worded twice. Once where you would answer Yes. And once where you would answer No.

=======================
Box 6: Is the recipient of the distribution the designated beneficiary?
Recipient is not designated beneficiary
Yes

=======================

If I focus on the first question, the answer is Yes. But choosing Yes, results in Box 6 in form 1099-Q being checked which is the wrong result.
If I focus on the second statement, the answer is No (this is a double negative and is a very poor way to phrase a question/statement). However, if I do answer No, then the Box 6 in form 1099-Q is not checked, which is the correct result.

Turbotax team--Please fix this so the language is not confusing.

Finally, please fix the QTP to Roth IRA box so that it properly works soon.

Thanks!

JFW3

Level 4

100% agree. I have the same questions. A QTP-to-Roth transfer shouldn't increase your taxable earnings, but TT may not want to assume that, since there are likely situations where a QTP-to-Roth transfer doesn't qualify under the rules. For example, if you transfer more than $35,000 over a lifetime. They may tell us not to input the 1099-Q, which was the answer last year. Box 6 is terribly worded. They need to follow the 1099-Q -- but wonder how the answer is programmed into TT.

DaveF1006

Level 15

Here are some suggestions to consider with the entry of the 1099 R.

You want Box 6 on the generated form to be unchecked (assuming the recipient is the beneficiary).
Even though the first question asks if the recipient is the beneficiary, the software is actually looking for the trigger for the Form 1099-Q instruction for Box 6, which says: "Check if the recipient is NOT the designated beneficiary." * Action: Answer "No" to the prompt. This signals the software not to check the "Not the beneficiary" box.
If the 1099-Q was issued in your child's name (the student) and they used it for qualified expenses, don't enter the 1099-Q at all. IRS Publication 970 explicitly states that if the distribution is non-taxable (used for qualified expenses), it does not need to be reported on the return. This avoids ‌the software confusion entirely.

The 529-to-Roth rollover is a relatively new provision and here some recommended steps for that.

The IRS Stance: According to IRS Publication 970, qualified rollovers are not reported on your tax return. They are non-taxable events.
The Problem: If you enter the 1099-Q for the rollover, TurboTax currently tries to tax it because it doesn't have a "This was a Roth rollover" checkbox yet.
The Current Workaround: 1. Do not enter the 1099-Q for the rollover portion into TurboTax. 2. Keep the 1099-Q and your proof of the "trustee-to-trustee" transfer in your records. 3. If the beneficiary makes money and you want to track it, you can add it to the Roth contribution in the Deductions & Credits section. Make sure the total (rollover + any other contributions) is not more than the annual limit ($7,000 for 2025).

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gjolyAuthor

Level 3

this worked last year but they changed the form just a bit by adding the extra box but the rollover from 529 to Roth has been there for a couple of years now. So what I am rather disappointed by is that this is taking Intuit/TurboTax so long to fix and update in the program. This should be a continuation of the same logic as before. If they want to add a few other questions, then that should be something that should have been completed by now.

Intuit: When will you have the 1099-Q correctly updated so that a rollover from a 529 to a Roth will be understood by the program and it is not to be considered taxable income?

KrisD15

Level 15

It is my understanding that a concern has been submitted and an update is expected.

Until then, the following steps can be used to enter an approved 529 Account to Roth Rollover.

The rollover must have been done in a Trustee to Trustee manner to ensure that the requirements were met, such as the account being established for at least 15 years:

To enter a 529 Savings Account Rollover to Roth using TurboTax Tax Year 2025

Be sure to enter your income first. Contributing to a Roth Account, including Rollovers, requires meeting the general rules and limits of a yearly Roth Contribution. This means you must have earned income in the amount of, or higher, than the 529 to Roth rollover.

Go to the Federal Taxes Section of TurboTax
Wages & Income
Less Common Income
Miscellaneous Income, 1099-A, 1099-C START or UPDATE
Scroll down and select “ESA and 529 Distributions (Form 1099-Q)" START or UPDATE
Form 1099-Q “Did you receive a Form 1099-Q for qualified tuition program distributions in 2025?”
Yes Continue
1099-Q distribution “Who received the 1099-Q distribution?”
Taxpayer or Dependent (SELECT THE BENEFICIARY of the 529 account, NOT THE OWNER) Continue
Designated beneficiary for this 1099-Q “Tell us the student whose education expenses were paid by the distribution reported on this 1099-Q”
Taxpayer or Dependent (SELECT THE BENEFICIARY of the 529 account, NOT THE OWNER) Continue
Enter Form 1099-Q
Distribution code should be “Distributions”
Continue
Distribution information “Enter the distribution amounts as shown on Form 1099-Q. The gross distribution must equal the sum of the earnings and basis amounts”
Enter the amounts. If the program shows an error, the program may be rounding both earnings and basis up or down, if so, change the earnings to be one dollar higher or lower so the earnings and basis added together equals the distribution.
Other Form 1099-Q information
Follow your 1099-Q
Box 4a should be checked so select “Yes” for Box 4a
Box 4b should not be checked, so select “No” for Box 4b
Box 6, if that is checked on your 1099-Q select “Yes” if it is not checked, select “No”
Continue
Death or disability
“Was this distribution received because the beneficiary dies or became disabled?”
Select “No” to both
Continue
Qualified tuition program
“What type of qualified program was the distribution made from?”
Select Coverdell ESA
Continue
Coverdell ESA
Enter the basis (the balance of YOUR contributions) before the distribution (December 31, 2024)
Enter any contributions made to the 529 in 2025, this most probably should be zero
Enter the total balance of the 529 Account at the end of 2025.
Continue
Return of contribution “Was this distribution a return of contribution to a Coverdell ESA?”
Select “Not applicable”
Continue
Distribution Transfer
Select “No”
Continue
Rollover
Select “No”
Refund of education expenses
Select “No”
Continue
Form 1099-Q summary
Here you should see a list of the 1099-Q with the amount in Box 1 for the Roth transfer which should be under the limit for 2025 of 7,000 for taxpayers under age 50.
Student information summary
Here the beneficiary’s name should be listed
Select Continue

If you also have Form 1098-T or additional expenses relating to the student (BUT NOT THE 1099-Q FOR THE ROTH ROLLOVER) please go to
Deductions & Credits
Education
Expenses and Scholarships (Form 1098-T)

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user17712776278

Level 2

Agreed that TurboTax is very confusing on this aspect.

It would be much better for Turbo Tax to just ask "Is box 6 of the 1099-Q checked?"

JFW3

Level 4

Yes!! Not to mention a whole lot simpler in wording and straightforward.

user17712776278

Level 2

This is likely the last year I use TurboTax.

I spent over an hour on the phone with the extra upcharge for phone/online support and they were astonished as I was at the end once they understood the tax code. They added in 2nd line support that asked to falsify items from the forms to see if it would change how turbo tax treats the secure act 2 rollover. I had to educate them at each step on tax laws until eventually they agreed and said to just not enter it and agreed TurboTax was flawed. It's still flawed even today trying to tax me for the Roth contribution as our income is too high. Nowhere does it ask if the contribution was a qualifying 529 rollover. It's crazy that two years since secure act 2 that turbotax doesn't walk people through this correctly and likely causing a high amount of people to over pay taxes. It's unexcusable.

gjolyAuthor

Level 3

Almost a full two months since this first post, an update has been made but there are still issues. The error that was flagged previously in the error check for federal was the QTP to Roth box 4b. Now that error is gone but you have to go into the list of forms and find the 1099-Q worksheet and check the 5a box to verify that your 529 plan and all the rules meets the requirements for the tax free rollover. This should be questions that are asked in the step-by-step. Once I checked the 5a box in the 1099-Q worksheet, the federal tax was correct as was the state tax. HOWEVER, when I checked the state tax, there was an error in that review for the 1099-Q--no idea what as it was flagging the first name field.

Under 3 weeks to tax filing day to fix something that worked last year just fine. Intuit--Please get this fixed by next week and please ensure you keep all the test cases and valid answers and scenarios to you can regression test next year's version of TurboTax and fix issues quicker. And don't use AI to do your programming.

DaveF1006

Level 15

Check these things in your return.

Check the 1099-Q Worksheet again: Look at the top of that specific worksheet. Ensure the Recipient’s Name and SSN are appearing correctly. If they are black (instead of blue or green), they might be "hard-coded" and not flowing to the state.
The "Delete and Re-link" Method: Sometimes, the cleanest fix is to delete the 1099-Q entirely from the Federal side and re-enter it.
Now that you know the “5a box” is the key, entering it again usually gets the software to match the name and SSN fields to the State return correctly.

Check the State "Information Worksheet": Switch to your State forms and find the "Information Worksheet" (usually the first form in the list). See if your name or your dependent’s name is missing a middle initial or has a trailing space. State systems are notoriously picky about matching the Federal "Header" exactly.

Just a friendly reminder (though it sounds like you’re already on top of this): for that rollover to truly be tax-free and satisfy that 5a checkbox, ensure:

The 529 plan has been open for at least 15 years.
The amount doesn't exceed the $35,000 lifetime limit.
The funds being moved wasn't contributed within the last 5 years.

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gjolyAuthor

Level 3

Thanks for the things to check.
I did #1 and that all was fine.

I deleted ALL the 1099-Q info and started over. When I did this and went through the step-by-step, I noticed a fundamental flaw with the logic. It is assuming that the recipient of the 1099-Q rollover is a student. Somehow box 6 one the 1099-Q worksheet is getting checked despite answering these questions the very same way I did before. Being a student is not a requirement to be able to do the 529 to Roth rollover. This is the point of allowing the rollover. The recipient of the funds and the 1099-Q is the beneficiary of the 529. the criteria for rolling over is met, no additional money deposited for 5+ years, it has been in place for over 15 years with this same beneficiary. I had to uncheck box 6 and then go down to the rollovers section and check box 5a again. There was no reason box 6 should have been checked. It wasn't getting checked in prior versions of this year's turbotax.

Some changes have been made but the whole 1099-Q in Turbotax is still significantly messed up and requires manual tweaking. There are likely logic questions such as "Was the recipient a student during the 2025 tax year?" and then there can be questions about educational expenses. But if they were not a student, those questions are not relevant and the rollover can still take place.

And box 5a in the rollover section of the worksheet should require a question in the step-by-step, that asks those qualifying questions so if they answer yes to all of them, then 5a is checked automatically.

I should be getting paid for debugging this for Intuit.

gjolyAuthor

Level 3

Still not fixed with the latest update on April 3, 2026. Box 6 still does the opposite of what it is supposed to do. There are no questions for section 5 in the 1099-Q worksheet to validate that the rollover meets the rules for a tax free rollover to a Roth.

This needs to be prioritized.

AI programmer--please prioritize fixing the step-by-step for 1099-Q including adding questions to validate that the rollover meets the criteria necessary.

Unbelievable!! 😠