topic 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. in Retirement tax questions

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 — Sun, 08 Feb 2026 14:44:46 GMT

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?

Re: 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.

Anonymous — Sun, 08 Feb 2026 15:08:59 GMT

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

Re: 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 — Sun, 08 Feb 2026 15:25:54 GMT

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.

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

RobertB4444 — Thu, 12 Feb 2026 19:03:16 GMT

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.

Re: 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.

user17711014213 — Sat, 14 Feb 2026 20:41:29 GMT

This is a turboTax bug. They should fix it.

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

ronmckee15azcat — Sun, 15 Feb 2026 15:47:48 GMT

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.

Re: 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.

usna85fl — Mon, 16 Feb 2026 18:32:46 GMT

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.

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

silent7partner — Tue, 17 Feb 2026 15:16:27 GMT

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?

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

user17714638856 — Thu, 19 Feb 2026 01:23:24 GMT

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.

Re: 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.

fredwunderlich — Thu, 19 Feb 2026 12:55:16 GMT

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.

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

drosquin — Mon, 23 Feb 2026 15:28:22 GMT

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!

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

KWCOLLIER — Tue, 24 Feb 2026 16:55:25 GMT

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?

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

user17711014213 — Tue, 24 Feb 2026 17:11:15 GMT

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.

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

tim4hawks — Tue, 24 Feb 2026 18:48:36 GMT

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.

Re: 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.

JFW3 — Thu, 26 Feb 2026 16:41:09 GMT

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.

Re: 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.

annieland — Fri, 27 Feb 2026 18:12:48 GMT

It's interesting that there is another bug in the 1099-Q entry that it looked like they were GOING to fix and then just wiped it out. The OBBBA had a new provision that allowed you to remove 529 funds to pay for qualified K-12 expenses (besides Tuition which was already there) that occured after July 3, 2025. The first versions of TT desktop threw a red error just like it continues to do for the Roth transfer, but it DID have a pertinent question on the worksheet "Did you incur expenses for K-12 after July 3, 2025?" If you checked 'Yes' you got an error saying to stay tuned for OBBBA updates.

A few software updates later and that worksheet question just completely disappeared. Like they were gonna fix it but were like, nah, we can't even get 529 to Roth to work, we better just forget this even exists. Imagine if not only did they know that withdrawal isn't Federally taxable but IS taxable in my specific state? My mind would be blown.

Does Intuit think we just don't notice this stuff?

Re: 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.

bjemerson2001 — Sun, 01 Mar 2026 04:38:11 GMT

I have had so many issues with Turbo Tax this year I am not even using it. The advise from TT is just not to enter the 1099-Q. So I'm sure people will miss out on the AOTP and LLC credits because of this bad advice. I also have a situation with a single 1099-Q with some qualified and some unqualified taxable expenses that should avoid the 10% penalty. None of it works. I don't think I would trust anything that TT puts at this point. It was supposed to be fixed on the 27th but wasn't. I'm going to try H&R Block software and never return to TT.

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

JFW3 — Sun, 01 Mar 2026 05:50:15 GMT

I've concluded after two years that TT is not going to program a 529-to-Roth rollover that is not taxable. Why don't they at least add a field at the bottom of the form that lets the user enter the form, indicate that the transfer is not taxable, and have an input field to document that decision? Obviously, if the user indicates the transfer is not taxable, TT will not include the earnings portion in taxable income. I don't like the idea of simply ignoring a 1099 form, and I look to TT as a repository for my tax submissions. It's not a series of interview questions to determine whether the rollover is taxable, but it's better than simply not inputting the 1099-Q.

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

Confused43 — Tue, 03 Mar 2026 21:09:42 GMT

On IRS Publication 970, under Rollover and Other Transfers, it states:

Assets can also be transferred from a QTP to a Roth if certain requirements are met. A Roth IRA for the beneficiary of the same beneficiary, if the distributions are a direct trustee to trustee transfer from a QTP account that has been open for more than 15 years, etc.

Then later at end of paragraph, it states:

‘Don’t report qualifying rollovers (those that meet the above criteria) anywhere in Form 1040, 1040-SR, or 1040-NR. These aren’t taxable distributions.”

I don’t think we have to report it if we meet all the criteria?

Re: we rolled over $7000 from my son's 529 plan to his roth IRA. I indicated it was a roth IRA ro...

fredwunderlich — Tue, 03 Mar 2026 22:20:36 GMT

I have printed this for my records. Great answer. When all else fails, read the directions.