529 Rollover to Roth

[MKPatel]

My son is the beneficiary of the 529 plan, and he graduated from university and is currently working.  He has unused fund in the 529 Plan account, and he rolled over $7000 to his Roth IRA for 2024. He received 1099-Q as a Recipient. How do we enter this information to prepare his 2024 tax return using TurboTax software so that it does not get reported as taxable event?

[MayaD]

Don't report the forms on your return if the rollover is not taxable. Keep it for your records.

For the rollover to be tax and penalty 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 same person.
• The amount of the rollover is limited: Annual rollovers are subject to applicable Roth IRA contribution limits. $ 7000- $8000( 50 or older). $35,000  lifetime limit.
•  Must be paid in a trustee-to-trustee transfer.

my529