topic 1099Q, Distribution Transfer page, it asks: Did you roll over or transfer all or part of this distribution of $$$$ within 60 days to another qualified tuition program? in Retirement tax questions

1099Q, Distribution Transfer page, it asks: Did you roll over or transfer all or part of this distribution of $$$$ within 60 days to another qualified tuition program?

darindinelli — Sat, 01 Jun 2019 04:59:35 GMT

Can you please clarify this question. such as, the 529 plan pays directly to the institution.

This is the roll-over option for funds in a 529 plan. You...

ToddL — Sat, 01 Jun 2019 04:59:37 GMT

This is the roll-over option for funds in a 529 plan. You can take the money out and transfer it to another qualified tuition plan without getting taxed on the accumulated earnings.

If the 529 distribution went directly to the school (or to the parent or the student) for expenses, then the answer to this question is "No".

If you took the 529 distribution (all or part) and transferred it to another 529 (or similarly qualified plan), then the answer to this question is "Yes".

Re: This is the roll-over option for funds in a 529 plan. You...

feiwenw — Sat, 04 Jul 2020 03:02:08 GMT

Hi,

If I choose "No", i ended up paying the tax for 529plan which is not correct. Please advise the answer should be "yes", if i rollover all to pay the tuition. Thanks

Re: This is the roll-over option for funds in a 529 plan. You...

Anonymous — Sat, 17 Feb 2024 16:57:46 GMT

The same thing is happening to me. Did you ever get a response?

Re: This is the roll-over option for funds in a 529 plan. You...

AmyC — Sat, 17 Feb 2024 18:42:54 GMT

The 1099-Q should not be entered if all of the money went to qualified expenses. The 1099-Q should only be entered if there is a tax consequence. It is an informational form, not a tax form.

From IRS Publication 970, Tax Benefits for Education:

If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions

@Anonymous

@feiwenw