Has Turbotax created a fix for the 1099-Q? We transferred $7,000 from a 529 plan in which I am the beneficiary to my Roth IRA of mine. When I enter into turbotax it calculates tax on the earnings, when this is supposed to be a tax free exchange as I meet all the criteria. Please advise. Thanks! Isabelle Mohr
Please simply do not enter the 1099-Q per IRS instructions.
I do not know if the programmers will add an option to choose rollover to Roth for the purpose of the 1099-Q, but if they plan to do that, it will not happen for this tax filing season.
There is no IRS tax form to report a 529 to Roth rollover.
Please keep a copy of the 1099-Q with your tax file but do not enter the 1099-Q into the TurboTax program.
“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 and the amount distributed does not exceed total contributions (and attributable earnings) made to the QTP more than 5 years before the distribution date. However, this doesn't apply to the extent the amount distributed when added to other amounts contributed to Roth IRAs exceeds the annual contribution limit. For more information about contributions to Roth IRAs, see Pub. 590-A.”
“Don't report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040, 1040-SR, or 1040-NR. These aren't taxable distributions.”