Form 1099-Q Other Information Box 6

[JFW3]

TT updated the Form 1099-Q for 2025 taxes and added some new questions.  I'm inputting a QTP to Roth transfer into TT and have some other questions, but wanted to separate them.  Box 6 on the 1099-Q form is checked if the recipient is not the designated beneficiary.  The question on TT for Box 6 of the 1099-Q form is the most confusing.  It reads, "Box 6: Is the recipient of the distribution the designated beneficiary?"  If the recipient were the designated beneficiary, one would assume the answer to this question is YES.  The second line then reads, "Recipient is not designated beneficiary, Yes or No."  So if the recipient is the designated beneficiary, one would answer this question NO.  This is just unnecessarily confusing.  And does anyone know how this relates to the handling of the information on the 1040?

[DaveF1006]

Yes, here is how to enter the information in your TurboTax return. To get your 1099-Q to match your physical form and report correctly:

• The Prompt: "Box 6: Is the recipient of the distribution the designated beneficiary?"
• The Follow-up: "Recipient is not designated beneficiary [Yes / No]"

If you (the parent/account owner) received the money, you are the recipient, but your child is the Designated Beneficiary. In this case, the answer is NO (you aren't the beneficiary). This will result in Box 6 being checked on the software's internal version of the 1099-Q.

In regard to the question about the 1040, it depends on who needs to report the 1099Q. This question is to tell the IRS who the income should be linked to if the distribution ends up being taxed.

1. If the Recipient is the Beneficiary (Student): The 1099-Q is reported on the student’s tax return. Since students usually have lower income, any taxable "earnings" are often taxed at a 0% or 10% rate.
2. If the Recipient is NOT the Beneficiary (Owner/Parent): The 1099-Q is reported on the parent’s return. Any taxable earnings will be taxed at the parent’s higher marginal tax rate