Turbotax 1099‑Q for a qualified tuition program Box4 B for 529

[spBob]

Hi,
I’m using TurboTax 2025 and I have a Form 1099‑Q for a qualified tuition program (QTP). On this form, box 4b (QTP to Roth IRA) is checked. I entered the 1099‑Q into TurboTax exactly as it appears, but TurboTax is treating the earnings in box 2 as taxable and is adding tax on that amount.

My understanding is that a direct QTP‑to‑Roth IRA transfer should not be taxed if it meets the IRS requirements, so I’m concerned that TurboTax may be handling this incorrectly or that I may be entering something wrong.

What are my options to correctly report this in TurboTax, and is there a different way I should be entering this 1099‑Q so that the QTP‑to‑Roth IRA transfer is not taxed?

[RobertB4444]

The 1099-Q is the only reporting that needs to be done for a qualified QTP to Roth transfer.  That gets submitted to the IRS by the financial institution handling the QTP as well as a 5498 from the institution handling the Roth.  

You should only report the transfer on your tax return if it exceeds the $35,000 limit placed on it at which point it becomes taxable.  Which is why the TurboTax system is trying to make it taxable.  Just delete any entries related to it.

Here is some more information on QTPs and the QTP to Roth transfers.

[spBob]

Thank you