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Get your taxes done using TurboTax
No, if you made the contribution for 2022 in 2022 you cannot recharacterize it as a 2023 contribution.
You can recharacterize the Roth contribution as a traditional IRA contribution for 2022 and then apply the excess in the traditional IRA on the next year's return. But you will have to pay the 6% penalty on your 2022 tax return and you need to be sure that you are able to make the contribution for 2023.
To enter a recharacterization on your 2022 return (request this with your financial institution) :
- Login to your TurboTax Account
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution
- Enter the Roth contribution amount
- Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
- 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.
- On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you are thinking about doing a backdoor Roth. If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible)
To apply the excess traditional IRA contribution to 2023 on your 2023 tax return:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “traditional IRA”
- On the "Do you have any Excess Traditional Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the total excess contribution from 2022 (if it wasn't carried over).
- On the "How Much Excess to 2023?" screen enter how much you want to apply to 2023.
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March 3, 2023
5:39 AM