If you’re rolling over a 529 plan to a Roth IRA in TurboTax, the 1099-Q section might show taxes that don’t apply, since it treats the transfer as non-qualified. For these rollovers, the IRS doesn’t require you to report the 1099-Q.
If your rollover meets all the rules (the account is at least 15 years old, the beneficiary is the same, and you’re within the $35,000 lifetime limit), leave the 1099-Q out of TurboTax.
The 1099-Q should be kept for your records, but it doesn't need to be entered into the software, as the rollover is not taxable.
If the rollover was a 529-to-529 transfer (not a Roth rollover), ensure you indicate that it was rolled over to another qualified plan within 60 days to avoid taxation. This is a followup question in the interview after you enter the 1099Q.
If this is a Roth rollover, you need to delete the 1099Q entry. If working online go to
- Tax Tools
- Tools
- Delete a form
- Delete form 1099Q
If working in Desktop, go to the forms mode. Locate form 1099Q, select it, and then delete it at the bottom of the form when it appears in the right pane of your screen.
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