529 Plan rolled over to a Roth IRA do you still report the Roth IRA contribution

[npkriz]

I understand that I do not report the 1099-Q for a 529 plan to a Roth IRA rollover. But do you still report that you made a Roth IRA contribution for 2024 under the Deductions & Credits tab under the Retirement and Investments Section? For example, my dad rolled over $7000 into my new Roth IRA (the max IRA contribution for 2024) from a 529 Plan that I am the beneficary of. Do I enter that I made a $7000 contribution to a Roth IRA in 2024? Does my dad need to report anything on his taxes?

[MinhT1]

Yes. 

While a rollover from a Traditional IRA or other retirement plan such as a 401(k) plan to a Roth IRA does not count as a new contribution, a rollover from a 529 plan to your Roth IRA does count as a contribution and is subject to Roth IRA contribution limits and a lifetime rollover limit of $35,000 per beneficiary.

You will report this rollover as a contribution to a Roth IRA on your tax return.

If all the requirements for the rollover are met, the rollover is not taxable and your father as the owner of the 529 plan, does not have to report form 1099-Q on his tax return.

@npkriz  I have edited my answer

[Edited 03/25/2025 | 7:41 AM PST]

[npkriz]

Thank you. I have a question on your answer. When you stated, "A rollover from a 529 plan to your Roth IRA does not count as a contribution and does not affect your annual contribution limits" are you saying that I can still contribute another $7000 to into a Traditional IRA?

I copied the information below from the IRS publication 590 and I thought it meant that if I received a rollover from a 529 Plan to a Roth IRA, this contribution does affect my annual contribution and I cannot contribute another $7000. If what you state is correct would be great! I understand how new this allowed rollover is.

Thank you

Qualified tuition program rollover to a Roth IRA.

 Beginning with distributions made after December 31, 2023, a beneficiary of a section 529 qualified tuition program is permitted to roll over a distribution from the section 529 account to a Roth IRA for the beneficiary if certain requirements are met.

• The rollover must be paid through a direct trustee-to-trustee transfer to a Roth IRA maintained for the benefit of the beneficiary.

• The rollover amount for a year cannot be more than the Roth IRA annual contributions limit, and all such rollovers for the individual’s lifetime cannot exceed $35,000.

• The rollover must be from a section 529 account that has been open for more than 15 years.

• The distribution cannot exceed the aggregate amount contributed to the program (and earnings attributed to the contributed amount) before the 5-year period ending on the date of the distribution.

[MinhT1]

Please see my edited answer above.

[npkriz]

Thank you for looking into my question more. I liked your first answer better 🙂 but I am glad I asked a second time before over contributing to my IRA. With the ability to rollover a 529 plan to a Roth IRA being just over a year old, hopefully Turbo Tax or the IRS will be clearer on how to report this type of rollover in 2025.