Under Secure Act 2.0, my son is able to transfer $7,000 of unused 529 Plan funds tax-free to his Roth IRA. He has followed all the rules governing this "rollover" and received a 1099-Q from the 529 Plan indicating that it is a "QTP transfer to a Roth." As others have pointed out, TurboTax this year indicates that its "software has not been updated to support this yet."
Here are my questions:
1) Has the updating really not been done--it is March 20, 2026!
2) For tax year 2024, he characterized a similar rollover of $6,597.45 as a contribution to Roth. Does he do this again for 2025 or does he completely ignore the 1099-Q on his federal return?
3) Since he lives in California, which does not follow the federal Secure Act 2.0 tax exemption, for the California 540 return, he clicked on a "Miscellaneous adjustment" and selected "expanded use of 529" and enter the earnings portion of the rollover + 2.5% tax penalty as "excluded income from federal." Is this the correct procedure for including the rollover onto his Californ 540 tax return?
4) Also, Turbotax used to allow me to discuss questions with a "tax expert" and share Turbotax screens with that expert without paying an extra fee. Is that service now only available by paying an extra $60 for Turbotax Live Expert?
