The beneficiary has the option to notify the Roth custodian that this contribution is to be applied to 2024 because it was made during the period in which the contribution could be assigned either to 2024 or 2025. The following is copied from 2023 IRS Pub 590A, p 2. Update the years in the last paragraph by 1 to 2024 and 2025 to reflect what the 2024 590 A will show:I have a question on a twist of this scenario. I did the 529 to Roth rollover for the beneficiary of the 529 in 2024. A 1099-Q was issued for 2024. However, I had to mail a paper form, and it arrived late in December. The Roth IRA custodian received the funds in January 2025 and consider them a 2025 contribution. The 5498 won't be issued until May 2026. Is this a problem?
Beneficiary needs to notify the Roth custodian prior to 4/15/2025.Qualified tuition program rollover to a Roth IRA. Beginning with distributions made after December 31, 2023,
a beneficiary of a section 529 qualified tuition program is
permitted to roll over a distribution from the section 529
account to a Roth IRA for the beneficiary if certain requirements are met.
• The rollover must be paid through a trustee-to-trustee
transfer.
• The rollover amount cannot be more than the Roth
IRA annual contributions limit.
• The rollover must be from a section 529 account that
has been open for more than 15 years.
The distribution is paid in a direct trustee-to-trustee
transfer (rollover) to a Roth IRA maintained for the benefit
of the designated beneficiary. The distribution cannot exceed the aggregate amount contributed to the program
(and earnings attributed to the contributed amount) before
the 5-year period ending on the date of the distribution.
A distribution made after December 31, 2023, and before April 15, 2024, that is rolled over to a Roth IRA by April 15, 2024, and designated for 2023 would be reported as a Roth IRA contribution for 2023.
Statistics: Posted by Alan S. — Fri Jan 31, 2025 7:51 pm