Thanks Amy and Thomas! But how do I show on my state form that the first 1099-Q amount was transferred back to a qualified plan within 60 days so I don't get tax and penalty. On MN tax form, it asks that you enter all the distribution amount and the amount not used for education. When I enter both amount, and only the amount not used for qualified expense, I was taxed for the portion distributed but not used for education even though it was transferred back to a qualified plan right away. Should I enter 0 for the amount not used for qualified expenses instead since it shouldn't get taxed? Thanks!
