topic When will update be available to allow the QTP to Roth IRA transfer? in Retirement tax questions

When will update be available to allow the QTP to Roth IRA transfer?

nikkiwags — Wed, 04 Mar 2026 22:32:54 GMT

Re: When will update be available to allow the QTP to Roth IRA transfer?

CatinaT1 — Thu, 05 Mar 2026 15:39:34 GMT

Are you trying to report a rollover from a 529 plan to a Roth?

If your rollover met all SECURE 2.0 Act requirements, it should not be taxed. If TurboTax is calculating a tax on your 529 converted to a Roth IRA, it is likely because you manually entered Form 1099-Q into the software, or because the transfer did not meet the strict IRS criteria for a qualified rollover.

Here are the 2025 tax regulations that must be met for this rollover to be tax-free:

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 exact same person.
The rolled-over funds (and any associated earnings) must have been in the 529 account for at least 5 years.
The beneficiary must have earned income in 2025 that is equal to or greater than the $7,000 converted.
The conversion must have been a direct trustee-to-trustee transfer.
The rollover cannot exceed the 2025 annual Roth IRA contribution limit ($7,000 if under age 50; $8,000 if 50 or older) and counts toward the $35,000 lifetime rollover limit per beneficiary.

If your conversion meets all of the requirement above, IRS Publication 970 says that this is a non-taxable event and should not be reported on your tax return. Entering the Form 1099-Q into TurboTax triggers the software to treat the earnings as a non-qualified, taxable distribution.

To stop the rollover from being taxed, you must delete the form in TurboTax:

Select Tax Tools from the left-hand menu.
Select Tools.
Select Delete a form in the pop-up window.
Locate Form 1099-Q on the list and select Delete next to it.
Confirm the deletion and select Continue with my return.
You must retain your Form 1099-Q and the Form 5498 you will receive from your Roth IRA custodian in your personal records in the event of an IRS inquiry.

Re: When will update be available to allow the QTP to Roth IRA transfer?

nikkiwags — Thu, 05 Mar 2026 16:41:37 GMT

So my situation may be slightly different. Yes, I can delete form 1099-Q but along with my rollover from my 529 plan to my ROTH IRA, I also had another distribution from my 529 plan this year. There are two distributions that show on my 1099-Q. I cannot delete it because the other distribution needs to be entered into Turbo Tax.

My rollover from my 529 plan to my ROTH IRA does meet every single regulation you have listed. Right now like you said it is counting this as a taxable event.

Also if I go in to make different selection such as selecting both 4A as trustee to trustee transfer :

Box 4a: Was this a trustee-to-trustee transfer?

Yes

Box 4b: Was this transfer from a QTP to a Roth IRA?

Yes

It gives me an error and says: "Boxes 4a and 4b cannot both be 'Yes.' Choose the one that describes the type of transfer."

Please assist.

Re: When will update be available to allow the QTP to Roth IRA transfer?

AmyC — Thu, 05 Mar 2026 16:44:55 GMT

We expect an update for the1099-Q, hopefully tonight. Please check back tomorrow to see if the issue is resolved.

Re: When will update be available to allow the QTP to Roth IRA transfer?

nikkiwags — Fri, 06 Mar 2026 16:09:47 GMT

Hi I am still not seeing the update. I am still getting the same error message when I try to e-file. Can you check on that? Thanks! @AmyC

Re: When will update be available to allow the QTP to Roth IRA transfer?

CatinaT1 — Fri, 06 Mar 2026 16:28:14 GMT

If you are using desktop software you may need to do a manual update. Try clearing your Cache and Cookies and then try this link instructions.

If you are using the online software, Clear Cache and Cookies.

Re: When will update be available to allow the QTP to Roth IRA transfer?

nikkiwags — Fri, 06 Mar 2026 16:31:54 GMT

@CatinaT1 I am not using the desktop version, I am using the online software and the app. I have already updated it to the latest update and cleared my cache and cookies and I still don't see the update for the QTP to ROTH, it still says "Our program has not updated to support this yet. Please check back later for updates."

Re: When will update be available to allow the QTP to Roth IRA transfer?

MonikaK1 — Sun, 08 Mar 2026 19:32:29 GMT

I was just advised that the work on the Form 1099-Q box 4b for Qualified Tuition Program (QTP) transfers to Roth IRAs is still in progress, and that the updated target date for completion is March 19th. Update and check TurboTax on the 20th for releases from the 19th.

@nikkiwags

Re: When will update be available to allow the QTP to Roth IRA transfer?

CuriousHere — Thu, 12 Mar 2026 10:39:45 GMT

This isn't a new item...why is it taking so long for an update on something like this?

Re: When will update be available to allow the QTP to Roth IRA transfer?

CatinaT1 — Thu, 12 Mar 2026 12:04:19 GMT

If the only distribution from the 529 was for the purpose of rolling it to a Roth, you can follow this:

Here are the 2025 tax regulations that must be met for this rollover to be tax-free:

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 exact same person.
The rolled-over funds (and any associated earnings) must have been in the 529 account for at least 5 years.
The beneficiary must have earned income in 2025 that is equal to or greater than the $7,000 converted.
The conversion must have been a direct trustee-to-trustee transfer.
The rollover cannot exceed the 2025 annual Roth IRA contribution limit ($7,000 if under age 50; $8,000 if 50 or older) and counts toward the $35,000 lifetime rollover limit per beneficiary.

To stop the rollover from being taxed, you must delete the form in TurboTax:

Select Tax Tools from the left-hand menu.
Select Tools.
Select Delete a form in the pop-up window.
Locate Form 1099-Q on the list and select Delete next to it.
Confirm the deletion and select Continue with my return.
You must retain your Form 1099-Q and the Form 5498 you will receive from your Roth IRA custodian in your personal records in the event of an IRS inquiry.

Re: When will update be available to allow the QTP to Roth IRA transfer?

mttSkys — Tue, 17 Mar 2026 07:28:48 GMT

I hope this gets fixed soon. In California, this is a taxable event. So the form cannot be deleted to work around the lack of support in TurboTax.

Re: When will update be available to allow the QTP to Roth IRA transfer?

viv888 — Tue, 17 Mar 2026 19:11:19 GMT

Will this be fixed by end of this week?

Re: When will update be available to allow the QTP to Roth IRA transfer?

nikkiwags — Tue, 17 Mar 2026 19:17:40 GMT

@MonikaK1 We need confirmation this will be updated by end of week please, we all need to file. Please confirm the date!
@viv888 @mttSkys

Re: When will update be available to allow the QTP to Roth IRA transfer?

ETM — Tue, 17 Mar 2026 23:35:49 GMT

TurboTax is treating this as income in spite of the Publication. In addition, if you have recorded one of these, you still get an error message saying to wait for the update.

You can not get to an agent these days and we keep seeing wait for a new update. I would like to know when this is promised.

Making me wish I had bought a different product and with customer service so poor -- had to go through a back door to get to Community -- can't get past the purchase product -- more than seriously considering revoking the auto download.

Re: When will update be available to allow the QTP to Roth IRA transfer?

viv888 — Thu, 19 Mar 2026 23:12:41 GMT

Not fixed yet....

Re: When will update be available to allow the QTP to Roth IRA transfer?

CuriousHere — Fri, 20 Mar 2026 11:46:58 GMT

Well that's the last lie a tax expert from Turbo Tax will tell me.

All of you employees have habitually lied and deflected any true answer to this question. Next season for the first time in decades of using this product, I will choose another. After all these years and all this time, this lack of proper and prompt response simply proves what many have said about your company: it truly doesn't care about customer service.

Thanks for nothing.

Re: When will update be available to allow the QTP to Roth IRA transfer?

nikkiwags — Fri, 20 Mar 2026 14:25:21 GMT

@MonikaK1 I don't see any update I am still getting the same message. This is preventing me from filing! Please do not give all of us customers a date and then not provide the update or solution. This is terrible service. Will be switching tax programs next year for sure.

Re: When will update be available to allow the QTP to Roth IRA transfer?

user17740241621 — Fri, 20 Mar 2026 16:34:15 GMT

As of March 20th at 11:30 am CT this is still not fixed. Do you have a firm date on when Turbo Tax will be updated? Please escalate this issue of QTP 529 plan distributions to Roth IRAs being non-taxable and coded in Turbo tax correctly.

Re: When will update be available to allow the QTP to Roth IRA transfer?

Mochina — Sat, 21 Mar 2026 00:31:55 GMT

I agree with all these complaints. For tax year 2024, this issue was still very confusing in Turbotax but I was able to get it resolved. Why are users getting the "software has not been updated" message for tax year 2025? At this late date, this situation is really unacceptable.

Re: When will update be available to allow the QTP to Roth IRA transfer?

timjones30 — Sat, 21 Mar 2026 15:01:53 GMT

As of 3/21/26 @ 11:00 ET there is still no software update that addresses this issue.

And I am highly skeptical of the advice to just NOT enter the 1099-Q, if the distribution/transfer meets all the guidelines to be considered non-taxable. I bet the IRS probably comes calling in 2 or 3 years asking why your tax return filed didn't include the 1099-Q distribution.

Tim J.