It Looks Like You May Need to Amend Your 2015 Return

[ersu79]

TT display above message at the end of my entry of 2016 1099R dontaining a re-characterization from Roth to tIRA.  Details:
1. in 2015, i converted $14,000 from IRA to Roth.
2. in 2016 I recharacterized the entire conversion back to tIRA. Due to market changes, the amount actually moved to tIRA was $14,450.
Do I really need to amend any prior year's returns, and why?

[dmertz · Accepted solution]

You only need to amend your 2015 tax return if it does not already reflect the recharacterization.  In other words, if your 2015 tax return still shows the taxable amount of the conversion on Form 1040 line 15b or Form 1040A line 11b, you need to amend to remove it.

[ersu79]

Dear dmertz, huge relief. thanks so much. I assume your answer would be the same if I had a loss rather than a gain at the time of re-characterization?

[dmertz]

Yes, an adjusted amount is transferred to the traditional IRA either way, but it's still $14,000 that was recharacterized.