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posted Feb 6, 2026 12:44:08 PM

2025 1099Q recipient and beneficiary

Got this year's 1099Q.  I am the account holder, and my child is the beneficiary.  I rollover 7000 to her Roth IRA which I did last year too.  However, unlike last year's 1009Q in which I am the recipient and she is the beneficiary, this year's 1009Q has here as both recipient and beneficiary.  when I try to put 1009Q in her tax return, it shows that she has pay tax for the gain.  Any suggestions?

Thanks!

 

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1 Replies
Employee Tax Expert
Feb 6, 2026 1:19:19 PM

A nontaxable 1099-Q should not be entered. The program wants to tax it. Tuck the 1099-Q into your tax folder. IRS Publication 970, Tax Benefits for Education states that nontaxable distributions should not be entered.


A note of caution: there is a $35,000 lifetime maximum, the beneficiary must have earned income equal to or greater than the amount rolled over, the 529 had to be open at least 15 years and you cannot rollover any contributions made in the last 5 years.