Getting a 1099-Q for a 529 Trustee to Trustee Transfer - Box 6 checked incorrectly?

The box 6 issue might look concerning, but you actually don't need to worry about it. When a 529 plan issues a 1099-Q with Box 4 marked as "Trustee to Trustee Transfer," it's basically telling the IRS that this wasn't a distribution you received - it was just moved between qualified accounts. The reason Box 6 is checked is because technically the "recipient" of the transfer is the new custodian (Fidelity), not your children (the beneficiaries). It's a bit confusing because the form isn't perfectly designed for transfers, but this is actually correct. For tax purposes, you don't need to report anything on your tax return related to these 1099-Qs. Since it was a direct transfer between 529 plans with the same owner and same beneficiaries, there are no tax consequences. You can simply file these forms away with your records.

I dealt with this exact situation last year when moving my kids' 529 plans around. I was totally confused by all the tax forms and conflicting advice online. Then I found https://taxr.ai which helped me figure out the whole mess. Their system analyzed my 1099-Qs and other documents and explained exactly what I needed to do. For trustee-to-trustee transfers like yours, they confirmed I didn't need to report anything on my tax return. The service also explained all the boxes on the form (like why Box 6 was checked) in plain English so I actually understood what was happening. Saved me a bunch of stress and probably kept me from making an expensive mistake.

Just wanted to follow up - I tried that taxr.ai site mentioned above for my tax documents including a similar 529 transfer situation. It was super helpful! Uploaded my 1099-Qs and it immediately explained that trustee-to-trustee transfers don't need to be reported on my return, even when Box 6 is checked. The explanation about Box 6 being checked because Fidelity (not the beneficiary) receives the money made perfect sense. It also helped me understand some other confusing forms I had. Definitely using this next year too!

If anyone is struggling to get answers directly from their 529 plan administrators, I've been there! Tried calling for weeks about a similar issue and kept getting stuck in hold loops or disconnected. Eventually used https://claimyr.com to get through to a live person at the plan administrator. They have this cool system that basically waits on hold for you and calls when a real person answers. They also have a demo video of how it works: https://youtu.be/_kiP6q8DX5c Got connected to a supervisor who confirmed exactly what others are saying here - for trustee-to-trustee transfers, the 1099-Q with Box 6 checked is normal, and we don't need to report anything on our tax returns. Saved me hours of hold time!

I was super skeptical about that Claimyr service mentioned above, but after wasting 3 afternoons trying to get through to my state's 529 administrator about a similar issue, I gave it a shot. Honestly, I'm shocked it worked! Got a call back about 90 minutes later and was connected directly with a 529 specialist. She confirmed that for trustee-to-trustee transfers, the 1099-Q with Box 6 checked doesn't need to be reported on tax returns. Said they get calls about this constantly because the form is confusing, but it's completely normal. Saved me hours of frustration!

I think this is pretty straightforward - Trustee to Trustee transfers aren't taxable events. The 1099-Q with Box 6 checked seems odd at first, but it's because the money went to Fidelity (not a beneficiary). The form is poorly designed for transfers. I've done several 529 transfers over the years and always get these forms. Never reported them on my taxes and never had an issue. The IRS knows these aren't distributions - they're just moving money between qualified accounts with the same beneficiary.

Anyone know what happens if you DO erroneously report a 1099-Q trustee transfer on your tax return? My accountant included mine last year before I realized it wasn't necessary. Should I file an amended return?

Just went through this exact same situation! I was panicking when I saw Box 6 checked on my 1099-Q forms after doing trustee-to-trustee transfers between 529 plans. Called my tax preparer and she confirmed what everyone else is saying here - these forms don't need to be reported on your tax return at all. The key thing to remember is that Box 4 being marked as "Trustee to Trustee Transfer" is what matters. That tells the IRS (and you) that this wasn't a taxable distribution. Box 6 being checked is just a quirk of how the form works - since technically Fidelity received the funds, not your children. I kept copies of the forms in my tax records folder, but didn't enter them into my tax software. Filed my return normally and everything went smoothly. Don't stress about it - you're handling it correctly by questioning it, but there's really nothing you need to do!