Re: Alabama College Counts Rollover

I did a roll over from one state's 529 plan to an Alabama College Counts 529 plan. This roll over is supposed to be a tax free roll over. Turbo Tax is counting it as:"Taxable earnings from a non-Alabama plan." That is not correct. The roll over is tax exempt. The whole thing. How do I resolve this?

posted

When you enter the 1099-Q, there is a screen that asks if it was rolled over, answer "Yes".

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Thank you for your response. I did say yes to that question. When I looked at the worksheet in form view it showed me owing tax and penalty on that rollover. I ended up re-entering the rollover amount and the tax and penalty disappeared.