I have unused fund from my 529 College fund. I had a direct Trustee to Trustee roller from my 529 Plan to Roth IRA. I got a 1099-Q tax form indicated that I have a direct Trustee to Trustee transfer on the $7000 distribution. I should not have to pay tax on this distribution but Turbo Tax still takes tax for this distribution. How can I correct this bug with TurboTax 2024?
Please do not enter Form 1099-Q for a trustee-to-trustee transfer.
Keep your copy of Form 1099-Q with your tax file.
“A Roth IRA for the benefit of the same beneficiary, if the distribution is a direct trustee-to-trustee transfer from a QTP account that has been open for more than 15 years and the amount distributed does not exceed total contributions (and attributable earnings) made to the QTP more than 5 years before the distribution date. However, this doesn't apply to the extent the amount distributed when added to other amounts contributed to Roth IRAs exceeds the annual contribution limit. For more information about contributions to Roth IRAs, see Pub. 590-A.”
“Don't report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040, 1040-SR, or 1040-NR. These aren't taxable distributions.”