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    #1

    Another 529 PLAN Question

    Dependent student graduated in 2023 with over 60K in excess 529 Plan Funds.
    She got married in 2024 and her parents used 30K for the wedding.
    Earnings of 16K reported on Parents return with the 10% penalty. Dad social security number on 1099Q.
    Parents also Funded a Roth IRA for their daughter for 2024 - 7K and plan to continue doing it for the next 5 years until the funds are all used up.
    The dependent social security number is on the 1099Q for the withdrawal for the IRA.
    Is there a penalty for this withdrawal?
    Thanks
    Brian
    Everybody should pay his income tax with a smile. I tried it, but they wanted cash
    Tags: None
    #2
    You don't say explicitly - the $7K funding of the Roth. Was it a trustee-to-trustee move into the Roth? Or the parents took a $7K withdrawal and then funded the Roth? Makes a difference.

    Comment

      #3
      It was Trustee to Trustee.
      Thanks
      Everybody should pay his income tax with a smile. I tried it, but they wanted cash

      Comment

        #4
        https://www.thetaxadviser.com/content/tta-home/issues/2024/jul/a-retirement-savings-head-start-529-to-roth-rollovers.html/


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        Comment

          #5
          Originally posted by Lion View Post
          https://www.thetaxadviser.com/conten...ollovers.html/
          Thank You, Sir.
          Everybody should pay his income tax with a smile. I tried it, but they wanted cash

          Comment

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