recharacterzation of Roth IRA to traditional IRA without 1099-R for prior year, do I need to amend last year's tax return

[qwqert]

Hello tax experts,

I would appreciate some guidance on whether I should file an amendment to my 2022 tax return.

In 2023,  I over contributed the full amount to my 2022 and 2023 Roth IRAs  in February and later realized that I was over the income limit for Roth IRA contributions.   I recharacterized the full amount to two new traditional IRAs before the tax return due date (April 15, 2023).  Although I did not received Form 1099R and Form 548 (from this 2023 recharacterization) until January, 2024, I filed this recharacterized contribution information as a nondeductible contribution to a (new) traditional IRA in Form 8606 for our 2022 tax return before the due date in 2023. 

In 2024, I received my 2023 Forms 1099-R. One shows a distribution code R in box 7, there was  $0 taxable amount in box 2a. In another Form 1099-R, it shows a distribution code 1 in box 7, there was  $0.01 taxable amount in box 2a. The third  Form 1099-R shows a distribution code N in box 7, there was  $0 taxable amount in box 2a.

My questions are :

- Do I need to amend my 2022 tax return to include the 2023 Form 1099-R with a code R and Form 548?  

- Or, should I proceed with completing my 2023 tax return and include all the information in my 2023 return?  

- When I made these recharacterizations in 2023, there was a decrease in the value of contributions. Does this impact my tax return?

Thank you very much!

[DanaB27]

No, you do not need to amend your 2022 tax return since you have already reported the recharacterization on your 2022 tax return. You can ignore Form 1099-R with code R.

Yes, you can continue with your 2023 tax return. Your basis from the 2022 Form 8606 line 14 should be carried over. If not then you can enter it when TurboTax asks  “Any Nondeductible Contributions to Your IRA?”. Answer "Yes" and then you can enter the basis from your 2022 Form 8606 line 14.

No, the decrease in value won't impact your return since you are not converting the traditional IRA funds to a Roth IRA.

You will enter the recharacterization when you enter the contribution to the Roth IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA”
5. Answer ‘Yes” on the “Roth IRA Contribution” screen
6. Answer “No” to “Is This a Repayment of a Retirement Distribution
7. Enter the Roth contribution amount 
8. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
9. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.