529 to Roth Conversion

Forum|Forum|5 months ago
February 8, 2026
1 reply
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We received a 1099Q for a 529 distribution that was rolled over to a Roth IRA. The recipient meets all the requirements for a rollover to a Roth. The earnings portion of the distribution are being assessed federal income tax when the 1099 Q information is entered. I read an earlier question and answer which indicated that the 1099 Q should not be entered as it is not subject to federal tax and that TurboTax will consider it taxable income if entered.

My issue is that the 529 is an Ohio plan and PA, the state where we now live, taxes 529 to Roth conversions when the 529 plan is not a PA plan. If I do not enter the 1099Q then how will TurboTax figure the correct our PA tax correctly?

What should I do with the 1099Q in this case, not subject to federal tax but subject to state tax?

RobertB4444

Level 15

Any Qualified Tuition Plan rollover into a Roth IRA is not taxable in Pennsylvania after January 1, 2024 provided it meets all of the federal requirements.

The federal requirements are -

that you have had the account for 15 years or more,

that all of the funds in the account are at least five years old

and that the Roth is in the name of the person who was the beneficiary of the 529 plan.

If you meet all of the federal requirements then save all of your records but that is all you need to do. You don't need to report the rollover on your tax return.

Here is some information on Pennsylvania 529 conversions.

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