According the IRS Publication 970, a QTP distribution isn't taxable if it's rolled over to:
- Another QTP for the benefit of the same beneficiary...
- An ABLE account for the benefit of the same beneficiary...
- A Roth IRA for the benefit of the same beneficiary, if the distribution is a direct trustee-to-trustee transfer from a QTP account that has been open for more than 15 years .... (Added via the SECURE 2.0 ACT)
I'm entering a 1099-Q for a distribution that was rolled over to a Roth IRA meeting all of the requirements. But when going through the questionnaire, TT asks:
"Was all or part of this distribution of $7,000 rolled over to another qualified tuition program or ABLE account within 60 days?
Answering the question correctly, as it was not, because a ROTH isn't listed, the full amount is taxed. Seems clear to me TT hasn't updated the software to include "or ROTH IRA ...", so I'm planning on just answering Yes, even though it's not.
Anyone else run into this? Thoughts/comments?
