2025 Form 1099-Q - Box 4b QTP to Roth IRA

[SB_1]

When will the Form 1099-Q be updated for Box 4b QTP to Roth IRA?

I get this error message:

"Form 1099-Q

QTP to Roth IRA transfer - You have indicated this is a QTP to Roth IRA transfer. Our program has not updated to support this yet. Please check back later for updates."

2025 Deluxe Windows/Desktop

[BK2000]

I am puzzled that this has post has hardly been viewed! I can confirm that the error is there and the proper solution is for TT team to fix it.

However, there is a workaround for the time being: IF all the distribution is non-taxable (which typically is), this 1099-Q does not need to be entered in the Federal return and you can simply delete it.

[SB_1]

TurboTax - this still hasn't been corrected. An obvious error.

Please fix it.

New update rolled out this morning that corrected the Form 8911 and Form 8911-A.

But 1099-Q not fixed.

[user17702173118]

Still not fixed as of 2/4/26. Please fix!

[MoraMrk]

As of the 2/7 update, still not fixed.   TT - we need an update on this

[user17707393480]

This issue is still not fixed as of 2/10. We need an update on this ASAP. 

[MoraMrk]

TTD team - please provide an update.

Will this be part of this Thursday's release?   If not, for which release is it scheduled?   I know I could proceed without putting in the 1099-Q and it won't change my taxes, but it's not clear to me if, when you address this issue, the data won't flow through to some other worksheets or carry-forward and I don't want to corrupt my return that way.

[MarilynG1]

Here are some workarounds if you receive an error entering Form 1099-Q with Box 4b checked for 'QTP to Roth IRA', 

• Delete and Re-enter as Contribution: Delete the Form 1099-Q. Instead, report the rollover amount under Deductions & Credits > Retirement and Investments > Traditional and Roth IRA Contributions. This ensures it is not taxed and properly updates your IRA basis.
• Force Non-Taxable Status: If keeping the 1099-Q in your return, try selecting both "Trustee-to-Trustee Transfer" (Box 4a) and answering "Yes" to "Was this money moved to another qualified account?" in the follow-up questions to trigger the non-taxable status.
• Verify Criteria: Ensure your 529-to-Roth rollover meets the requirements: >15 years open, same beneficiary, and under the annual limit. 

Keep records of the 1099-Q and the transfer for your files. 

@MoraMrk 

[sschlenoff]

Thanks,

I tried your suggestion and included it in Retirements and Investments.  It did make it a non taxable transaction as I didn't need to report the earnings vs the basis.

However, it triggered a retirement savings contribution credit.  This is great but want to make sure that this was intended and allowable.

Scott

[BK2000]

@MarilynG1 

I tried your second bulleted alternative suggestion (Force Non-Taxable Status) and it still became taxable in my case - I played with various options to no avail!

Anyway, wouldn't yet another alternative be to NOT enter this 'QTP-to-Roth IRA' 1099-Q at all at the Federal section? Given that all requirements are met and therefore it is indeed non-taxable, other experts have suggested to ignore it and just keep it for record keeping.

Your thoughts please? Thank you.

EDIT/ADDING

I found this in IRS Publication 970: https://www.irs.gov/pub/irs-pdf/p970.pdf

• Chapter 7: Qualified Tuition Program (QTP)
  • Page 53: Rollovers and Other Transfers / Rollovers
    • Page 54 at the top says:
      "Don’t report qualifying rollovers (those that meet the
      above criteria) anywhere on Form 1040, 1040-SR, or
      1040-NR. These aren’t taxable distributions."

Also in Chapter 6, bottom of Page 44 says: "Don't report tax-free distributions (including qualifying rollovers) on your tax return."

[MoraMrk]

Hi Marilyn,

Thanks for the workarounds - they all make sense, except that I don't think an outcome that triggers the retirement savers credit is proper.

Let me restate my question - when it is actually going to be FIXED, so that workaround are not necessary.   Clearly TT is aware of the problem - is it on a release schedule to be addressed?   Given that the 2025 Pub 970 is not even released in final form yet, thinking there is still an IRS dependency here?   Please address the release schedule.

Thanks

[MarilynG1]

Yes, a rollover to a Roth IRA from a 529 does not qualify for a Saver's Credit, so entering it as a Roth contribution on a tax return is not advised.  The IRS will get Form 5498 reporting the rollover, and the beneficiary needs to track their own Roth basis to include this.

If there is no taxable amount of the 1099-Q distribution, you don't need to enter the 1099-Q in your return.  TurboTax does not currently handle this situation clearly.

Here's more discussion from the community on reporting 529 to Roth IRA Contributions.

@MoraMrk 

@BK2000 

@sschlenoff