QTP to Roth IRA transfer

Forum|Forum|6 months ago
February 4, 2026
6 replies
103 views

I did a rollover from my 529 plan for my daughter in 2025 $2400, which is her earned income in summer. The rollover is a not taxable and qualified rollover. But TurboTax saying, "Our program has not updated to support this yet. What should I do?

ThomasM125

Level 15

Can you clarify where you rolled the 529 plan money to? Normally it is rolled over to another 529 plan or to a ROTH IRA. In either case, it would not result in earned income to your daughter. How does your daughter have earned income, how is it associated with the 529 plan distribution? Earned income is for services rendered, like wages from a job.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

slamnyAuthor

Level 4

With the new tax law. You are allowed to rollover to the beneificary Roth IRA from the 529 with the max of $7000 a year and max of $35000 life time from your 529 account. Since my daughter only had $2400 earned income, I can only rollover $2400 from the 529 to her Roth IRA.

KrisD15

Level 15

No, a rollover is not the same as a contribution.
The entire amount of a 529 account, regardless of student income, can be rolled-over trustee to trustee.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

ETM

Level 2

Daughter's return is saying the same thing as of today March 17. Still waiting on the update before filing. Got some time, but time is running out.

MarilynG

Level 15

A qualified rollover from a 529 plan to a Roth IRA for a beneficiary does not need to be reported on the beneficiary's tax return. She will receive a Form 5498 for her records and possibly also a 1099-R from the plan administrator to indicate the non-taxable rollover, which she will enter into her tax return. Trying to indicate that from a 1099-Q entry may only show a taxable Roth contribution.

Here's more info from IRS Pub. 970.

@ETM

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"