Hi: My child (who is a working adult) qualifies for the NY 529 rollover to Roth IRA. It has already been logged by the financial institution as a 2024 tax year Roth contribution. I do not have a 1099 Q since this contribution was made in 2025 for Tax year 2024. When I enter the $7000 contribution in Turbo Tax as a retirement contribution, Turbo Tax says that she is not allowed the Roth IRA contribution for 2024 because her annual income exceeds the IRS threshold, and is directing me to withdraw the contribution because of the penalty.
But a 529 rollover to Roth does not have this type of annual Roth IRA income limitation.
From the financial institution:
As with Roth IRA contributions, the beneficiary must have earned income that matches or exceeds the rollover amount up to the annual limit. (However, the beneficiary is not subject to Roth IRA income limitations.)
How should I handle? I was thinking not to report this on TurboTax for her return as the main advantage is that Turbo Tax keeps track of the total basis from prior years, but the institution does that as well
Any thoughts on what to do?
Thanks all
