529 to Roth IRA

[wpesnec]

Hello,

I transferred $14,000 in 2025 ($7,000 towards 2024 and $7,000 towards 2025) under SECURE 2.0 from my Edward Jones 529 account. At the time, Edward Jones was NOT able to do a trustee to trustee transfer, and therefore send the full $14,000 to me, as a REGULAR DISTRIBUTION, which I IMMEDIATELY transferred to my Roth IRA. As a result I received a 1099-Q showing the entire amount ($14,000 plus another non-qualified $22,000) as a REGULAR distribution. How do I enter in TurboTax this 1099-Q which should be SPLIT between the $14,000 (qualified) and the $22,000 (non-qualified)?

Thank you

Willy Pesnec

[AmyC · Accepted solution]

Follow these steps:

1. Open to federal deductions and credits
2. Locate Education
3. Select 1099-Q
4. Enter the form
5. Continue through the questions
6. Mark the $14,000 is treated as a rollover to another qualified plan

You will also need to:

1. Open to deductions and credits 
2. select ROTH IRA 
3. Enter contributions for 2024 and 2025. 
4. Again, mark this as a rollover/conversion.

[wpesnec]

Thank you very much Amy, for taking the time to answer my question, so close to the tax deadline. I really appreciate it as there is quite a bit of money at stake. So .... I only received ONE 1099-Q from Edward Jones, for a total of $36,000, categorizing both withdrawals as TAXABLE DISTRIBUTIONS ($14,000 towards the tax-free 529 to Roth IRA transfer, and $22,000 actually cashed for other taxable purposes). Am I allowed to split this 1099-Q in TurboTax so it does NOT automatically flag the IRS?

Thank you very much indeed!

Willy Pesnec