Question

529 Rollover to Roth

Forum|Forum|1 year ago
March 13, 2025
1 reply
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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?

M

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

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