Yes, you're correct.
- If the $7,000 transfer is the only contribution to your Roth IRA for 2024, you would enter $7,000 in the appropriate section of TurboTax. If you have made no other contributions, you wouldn't need to adjust further.
- However, if you have made additional contributions, you need to ensure the total of all contributions, including the 529 from you parents plus any you contributed does not exceed the annual limit of $7,000 (or $8,000 if you're 50 or older).
- If entering $0 in the "Traditional and Roth IRA Contributions" section is appropriate because the transfer is already accounted for, then you should follow that approach.
- Also be sure the your parent's financial institution transferred the funds directly to the institution managing your Roth IRA. This ensures that the funds do not pass through your hands, following the trustee-to-trustee transfer rule
Reach back out if something else is needed.
