Did you happen to notice that it's your daughter's SSN on the 1099-Q? That's because a taxable distribution is income to her, not you.

Thanks Phil.

I checked the 1099-Q and it actually has my wife's SSN in the recipient's box. Also, box 6 (recipient is not the designated beneficiary) is checked.

In the meantime, send your daughter the 1099-Q.

Actually we do her taxes for her too :-)...and my wife's parents.

So, with that additional piece of information, what's the next step?

Mark