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Education
A 529 to 529 rollover does not have an income limit. Cashing Savings Bonds for education (including putting money in a 529) does have an income limit.
So, even though cashing savings bonds and putting the money in a 529 is a form of "rollover", it's not treated the same as a rollover from one 529 plan to another. Instead, it is treated as cashing bonds and using the money for education.
TurboTax will apply the income limitations by completing form 8815. See the income limits and calculations on form 8815. https://www.irs.gov/pub/irs-pdf/f8815.pdf . In particular, note that the interest exclusion is "added back" when calculating your modified adjusted gross income (MAGI). See the instructions for line 9.
‎June 14, 2021
11:58 AM