we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA rollover within turbo tax, yet it seems to be making this taxable when not.

[ronmckee15azcat]

1099Q indicates QTP to Roth IRA. This is only the 2nd rollover (not exceeding 35k limit) and he earned more than 7K during the year. This should not be taxable. What did I miss in entering the information within TurboTax?

[Bugswell]

I'm having the same issue....so it's just not you. 

[ronmckee15azcat]

So what can we do to get TurboTax to take a look at this and possibly put in a correction?

I looked closer at the forms for the return, and it is taking only the earnings being moved from the 529 plan as taxable income, not the whole $7000.  Also, it is applying the 10% penalty for a penalty for an irregular withdrawal.  

[RobertB4444]

A 1099-Q that shows a withdrawal within scope of it's rules does not need to be entered into your tax return.  The problem that the system has is that when a 1099-Q is entered it assumes (in this case incorrectly) that the numbers are being entered into the tax return because they are not an approved withdrawal.  Since this is an approved rollover you don't need to enter the 1099-Q.

Here's more information on 1099-Qs.

[user17711014213]

This is a turboTax bug.  They should fix it. 

[ronmckee15azcat]

I get what you are saying and that is what I will do.  I would have thought, however, that the software based on what is entered from the 1099Q would make the determination of what is and isn't taxable.  For instance, it has me enter my 2024 refund from my state tax return but will tell me it isn't taxable because I used the standard deduction.  It honestly shouldn't be that difficult to make the determine, even if it requires asking a few more questions.

[usna85fl]

Same situation here.  This doesnt appear to be a priority for Intuit and it irritates the heck out of me.  This isnt the first year this 529-Roth rollover scenario has existed and I'm not sure why Intuit hasnt already addressed in the software for Tax Year 2024.

TurboTax Premier does not support this situation (QTP to Roth). The error-check actually states that, "Our program has not updated to support this yet." When can I expect a resolution?

I have used several AI applications to ask how I should resolve this issue.  ChatGPT stated that you literally have to go directly to forms and zero-out the taxable amount.  This did apply the right tax treatment (rollover not taxed), but my return still not pass the TurboTax error check.

[silent7partner]

It's my understanding the 1099-Q needs to be reported because one of the eligibility requirements for the rollover is earned income, which must be reported. Am I mistaken?

[user17714638856]

I have the same problem this year (2025).   It is treating the earnings in the $7000 contribution as taxable income.  It did not do this last year. (2024).  Using desktop version which shows a comparison to last year.  

[fredwunderlich]

This seems to be a question and un-fixed problem for many people.  

We should be able to enter the information on the 1099-Q, check the 

little box that says "QTP to Roth IRA" and the cute Federal Refund box

should not change.    Is it THAT hard?  I am not overly comfortable just

leaving the info completely off my tax return.

[drosquin]

I had the same problem as others.  If you receive a 1099-Q then you normally enter it.  TurboTax should be asking all the right questions to make this a non-taxable rollover to a Roth IRA.  Such as the 529 is over 15 years old, no change to the beneficiary, was it $7000 or less, etc....then capture the information and make it non-reported to the IRS.  This confusion is VERY FRUSTRATING!

[KWCOLLIER]

I have the same issue.  2025 is the first year I rolled my son's 529 into a new ROTH account for him.  Initially TT hit me with tax on the earnings.  Like others, Chat GPT (to my amazement) was helpful in letting me hammer the 1040 and worksheets into submission. 

IMO, the TT interview section for 529 distributions is not complete.  It is lacking in two areas (that I discovered): 1. Roth rollovers and 2. Room and board for live-with-parents college students where the parents take a distribution for the school-approved amount of support. 

With CHATGPT help, I was able to zero the tax on both distributions by going directly into the forms and forcing values [which feels a lot like doing my own taxes on paper].  When I run the "end of return" error check, I am getting an error on the 'X' in the 1099-Q box indicating the 529-to-Roth rollover.  It turns that 'X' "red", and then if you read the error's explanation text, it tells you that TT is not done writing the Roth/529 rollover section and suggests you update the software and keep coming back for updates.  My question is simple - Intuit, when will you finish the 529 interview sections (especially for 529 rollovers)?  I am unclear if I can proceed with an error message.  Can I e-file with an error?  I don't think this 529 rollover tax code is that new, so why the delay?

[user17711014213]

I'm changing my reply.  This is not a TT bug.  It is lack of support.  The program is telling us there is not support. I don't think TT or Intuit responds to these post.  I hope they are, at least, listening.  This is a simple issue to support.  Having to manually remove the taxable portion is unacceptable.

[tim4hawks]

But it worked properly last year, because we did the exact same thing for 2024. How is their SW so screwed up, when it worked last year.

[JFW3]

The QTP (529) to Roth did not work last year either.  The TT answer was not to input the 1099-Q because the 1099-Q states that nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return.  I just updated with the Feb 26, 2026 update, and TT still wants to include the earnings portion of a rollover to a Roth as taxable income.  So I again deleted that 1099-Q.  They need to ask a few more questions and then should be able to advise whether the earnings portion is taxable -- for example, has the QTP account from which the rollover originated been in existence for 15 years, is any of this rollover from earnings or contributions within the last five years, is the cumulative amount transferred to Roth under $35,000, and probably a couple of others.  Then the program can route the earnings portion correctly to taxable or nontaxable.  I don't think TT plans to do this adjustment.