I understand the 529 to Roth conversion does not result in any Federal taxes, as long as you meet criteria such as the length of time the account has been open etc. However, I live in California and the State deems the earned amount as taxable income in addition to levying a charge of 2.5%. For the $7000 rollover in January 2025, the principal/earnings split was $3000/$4000. As stated earlier, this is considered a 2025 IRA. Do I report the $4000 earnings to the California Franchise State Board in my 2024 or 2025 returns? Thanks
