Received 1099-Q for roll-over of 529 to Roth IRA but this transfer is not available on Turbo Tax. How to record?

[thebolins4]

The software only allows a distribution to another qualified tuition program (or ABLE). The transfer to IRA became available in 2024 so this should not be taxable but software if reducing my refund.

[AmyC · Accepted solution]

A nontaxable transaction should not be entered.  Please remove the form and keep it with your tax files.

Please verify your transaction is nontaxable.

 IRS Publication 970, Tax Benefits for Education states:

Any amount distributed from a QTP isn't taxable if it's rolled over to:

• Another QTP for the benefit of the same beneficiary or for the benefit of a member of the beneficiary's family (including the beneficiary's spouse),

• An ABLE account for the benefit of the same beneficiary or for the benefit of a member of the beneficiary’s family (including the beneficiary’s spouse). But this doesn’t apply to the extent the amount distributed when added to other amounts contributed to the ABLE account exceeds the annual contribution limit. For more information about ABLE accounts, see Pub. 907, Tax Highlights for Persons With Disabilities, or

• 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.

[Edited 2/5/2025| 10:47 am PST]

[thebolins4]

Thank you for the quick and detailed reply!

[npkriz]

Thank you for your explaination, 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, I rollovered $7000 (the max IRA contribution for 2024) from a 529 Plan. Do I enter that I made a $7000 to a Roth IRA in 2024?

[mfraible]

IRS recently finalized April 2025 1099-Q form updating Box 4 with a checkbox for QTP to Roth IRA Transfer.  Will TurboTax be updated so this revised form can be used for 2024 Tax Year.

[SusanY1]

To properly report a rollover this year, we recommend ignoring the amount of the rollover reported on 1099-Q (it is only required to be entered when reporting a taxable distribution) and entering the amount rolled over as a regular Roth IRA contribution (for proper tracking of these contributions.)   If other amounts were distributed that should be entered into TurboTax, please reduce the amount in Box 1 by the amount that was deposited into the Roth IRA.  

Since taxpayers have already received form 1099-Q for the 2024 tax year, I wouldn't expect the revised edition of this form to be in use until tax year 2025 (by 529 plan administrators or tax software, including TurboTax).  

[basegad]

I just LOVE how Intuit dodges all responsibility for this guidance by not issuing any Articles in Support or Help in the Apps and, instead, has it's "Tax Experts" respond to questions in the Community.  A continued saga of terrible software/product quality by Intuit for something that should be a easy patch to TurboTax!

🙄😖😠