Why QTP to Roth IRA transfer is not recognized by Turbo tax. It state they will issue an update, but so far nothing. Any Ideas?

[mirwaise]

Why QTP to Roth IRA transfer is not recognized by Turbo tax. It state they will issue an update, but so far nothing. Any Ideas?

[MonikaK1]

I was just informed today, March 23rd, that the update for QTP to Roth transfers has now been scheduled to run on Thursday, March 26th. Update TurboTax on Friday, March 27th and it should be there.

@mirwaise 

[mirwaise]

This is good news thank you. I did find some alternative approach but I rather have the right update I appreciate you following up.

[NM1 · Accepted solution]

TT installed an update today that now has some extra questions about the QTP-Roth rollover and does the right thing in making it not taxable. Yay!

*However*, the first time I opened the tax return after the update, it had screwed up the refunds. I found that TT kept wanting to put an X in the internal 1099-Q Box 6, "Check if the recipient is not the designated beneficiary." There is no X in Box 6 of the printed 1099-Q received from the 529 plan, and in the walkthrough question (which, a bit confusingly, asks in the reverse manner, i.e. "Is the recipient the designated beneficiary?"), I have always answered Yes. Yet when I went to the Forms View, it had checked Box 6, which would render the rollover ineligible.

After a few tries where I corrected the form by hand and also re-did the walkthrough, TT seems to have got the message. But there may be an issue here, so I would recommend that anyone needing this function open Forms View and check that "Form 1099-Q: Payments From Qualified Education Programs" form has been done right. You may need to walk through just to be sure.

[mirwaise]

Thank you NM1. I will try it tonight. I will keep an eye from what you have recommended make sure I get it right.

[baffled321]

Federal is fixed. Now cannot file as Turbo Tax still has to fix the state form (Michigan). Another user reported same issue with California.