topic ROTH IRA in Education

ROTH IRA

charlessgoldberg — Fri, 07 Mar 2025 19:51:35 GMT

MY GRANDSON RECEIVED A 1099Q.

THE DISTRIBUTION WAS ROLLED OVER INT A ROTH AND SHOULDN'T BE TAXABLE.

IT IS BEING SHOWN AS TAXABLE.

HOW DO I CORRECT THIS?

MayaD — Fri, 07 Mar 2025 20:21:56 GMT

It is tax free and penalty free if:

Doesn't exceed the yearly limit $7000
The 529 account must have been open for at least 15 years.
The beneficiary of the 529 account and the owner of the Roth IRA must be the same person.
Must be paid in a trustee-to-trustee transfer.

If all apply, don't enter the form. Keep it for your records.

Hal_Al — Mon, 10 Mar 2025 13:35:49 GMT

Q. HOW DO I CORRECT THIS?

A. Delete the 1099-Q.