Barby
Level 2
12-07-2019
10:01 AM
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The account has about $17000. Do I get taxed on earnings only. Am I taxed on the Distribution?
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George4Tacks
Level 15
12-07-2019
10:01 AM
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If it it YOUR 529, then you can take the distribution. The earnings are taxable and subject to a 10% penalty. You can then do anything you want with it, including gifting to me, as well as your son. You can NOT convert it to an IRA. You can use the money to add to an IRA, assuming you meet all the qualifications for an IRA.
Add https://www.irs.gov/pub/irs-pdf/p970.pdf to your reading list.
Here's wishing you many Happy Returns
Barby
Level 2
12-07-2019
10:01 AM
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Thank you - best answer and very clear
qbteachmt
Level 15
12-07-2019
10:01 AM
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Are you looking for the TurboTax forum? You are a bit lost on the internet. TurboTax is found at this link:
https://ttlc.intuit.com/community/file-with-turbotax/discussion/03/303
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"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.
Barby
Level 2
12-07-2019
10:01 AM
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No - I wasn't looking for Turbo Tax. I have Pro Series. Thanks anyway