nicepat
Returning Member

Can anyone help me understand why simple 529 plan fund transfer to another 529 plan program turns out taxable income?

I transfer the whole amount from Washington state GET to 529 plan in 60 days. This is direct trustee to trustee transfer, but TurboTax shows taxable income. 'Trustee-to-trustee transfer' option checked, but changed my taxable income. Why is it?