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Level 1
posted Aug 27, 2024 1:20:34 PM

529 to Roth Conversion in New Jersey

We plan to convert moneu from son's 529 to Roth IRA in 2024. We meet ALL the requirements.  Part of the converted money will be earnings on the money we deposited.   Will Turbo Tax be able to handle this type of transaction for:

Federal -  nothing is taxable

New Jersey - What we deposited into the 520 is not taxable because it was after tax money.  But I can't figure out if the earnings are taxable.  Will TurboTax know  how to handle it?

0 1 1682
1 Replies
Level 15
Aug 28, 2024 2:30:40 PM

@Diane77  because of the Turbo Tax Warrantee, that unless Turbo Tax explicitly states there is a particular form they do not cover, you have to trustTurbo Tax will know how to handle it, otherwise they pay the penalties and interest on the mistake.

 

So I wouldn't worry about it...