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Get your taxes done using TurboTax
No, the IRS says you should not report distribution that are not taxable.
Additionally, I assume the 2022 Tax Year 1099-Q reported sales because it was rolled over into a different account.
Once distributions are used for education purposes, only one 1099-Q should be issued with Boxes 1-3 reported.
Also, there are some changes planned for Education Savings Accounts, like the ability to roll funds into a Roth Account (with restrictions). Ask your plan administrator for details, or read next year's Pub 970 for the changes to be explained further.
According to the IRS:
“Don't report tax-free distributions (including qualifying rollovers) on your tax return.”
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March 27, 2023
4:18 PM