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New Member
posted May 31, 2019 9:59:35 PM

1099Q, Distribution Transfer page, it asks: Did you roll over or transfer all or part of this distribution of $$$$ within 60 days to another qualified tuition program?

Can you please clarify this question.  such as, the 529 plan pays directly to the institution.

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4 Replies
New Member
May 31, 2019 9:59:37 PM

This is the roll-over option for funds in a 529 plan. You can take the money out and transfer it to another qualified tuition  plan without getting taxed on the accumulated earnings. 

If the 529 distribution went directly to the school (or to the parent or the student) for expenses, then the answer to this question is "No".

If you took the 529 distribution (all or part) and transferred it to another 529 (or similarly qualified plan), then the answer to this question is "Yes".

Returning Member
Jul 3, 2020 8:02:08 PM

Hi, 

 

If I choose "No", i ended up paying the tax for 529plan which is not correct. Please advise the answer should be "yes", if i rollover all to pay the tuition. Thanks

Not applicable
Feb 17, 2024 8:57:46 AM

The same thing is happening to me. Did you ever get a response?

Expert Alumni
Feb 17, 2024 10:42:54 AM

The 1099-Q should not be entered if all of the money went to qualified expenses. The 1099-Q should only be entered if there is a tax consequence. It is an informational form, not a tax form.

 

From   IRS Publication 970, Tax Benefits for Education:

If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions

 

@Anonymous 

@feiwenw