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Roth IRA Rollovers & Tax Documents
At a glance
A 529-to-Roth IRA rollover is recorded as both a withdrawal and a contribution. The Roth IRA owner receives Form 1099-Q (for the 529 withdrawal) and Form 5498 (for the Roth IRA contribution). These forms are for recordkeeping and don’t need to be filed with tax returns. Visit IRS.gov for details.
While a rollover is considered a withdrawal from a 529 plan, it’s treated as a contribution to a Roth IRA.
During tax season, the person who owns the Roth IRA receives two documents: Form 1099-Q and Form 5498. These are for recordkeeping and don’t need to be submitted with a tax return.
For more information about these forms, visit IRS.gov or contact a tax professional.
Form 1099-Q
- This form shows the withdrawal from the 529 account. Invest529 (formerly Virginia529) issues this form, and a copy is sent to the IRS by the end of January.
- A paper copy is mailed to the address of the beneficiary listed on the original Roth IRA rollover request.
- A digital copy is also available. The Invest529 account owner and their beneficiary get an email when this document is ready. But only beneficiaries can view this document online.
- If a beneficiary already has an Invest529 web login, they can sign into their online account to view the form. If they do not have a web login, they can create one.
Form 5498
- This form shows Roth IRA contributions. The Roth IRA provider issues this form to its account owner, and a copy is sent to the IRS. Usually, this document is received once or twice a year, depending on the contributions.
- For Form 5498, Roth IRA accounts owners ask their providers for details about getting the document.
