asked

My wife had a Roth IRA that was moved into a 529 plan. The 1099-R shows a distribution of $8,100 with a taxable amount of $8,100. I'm confused because she contributed money after tax and never got a deduction for it. Box 5 shows $6,900 with code 2. Is this supposed to reduce the taxable amount, and why is my tax software not reflecting this reduction?

May 25th, 2024

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