If distributions from the 529 plan are not taxable, do not enter the 1099-Q forms.
For calendar years beginning after 2023, funds from an established 529 account can be transferred tax-free and penalty free to a Roth IRA for the beneficiary of the 529 account.
- The 529 account must have been open for at least 15 years.
- The beneficiary of the 529 account and the owner of the Roth IRA must be the same person.
- The amount of the rollover is limited:
- Annual rollovers are subject to applicable Roth IRA contribution limits. $ 7000- $8000( 50 or older)
- Rollover amounts from all 529 plan accounts may not exceed $35,000. Lifetime limit
- The money transferred must have been in the account for at least five years, and the amount can’t exceed your balance from five years prior.
- A Roth rollover from my529 must be paid in a trustee-to-trustee transfer. An account owner can't take a withdrawal for themselves and then send the money to a Roth IRA account
my529
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