@dmertz : follow up questions as I filled Turbo tax --> Federal Taxes --> Deductions & Credits ---> Retirement and Investments --> Traditional and Roth IRA Contributions
I included $6,000 towards 2022 traditional IRA between Jan 1, 2023 and April 18, 2023 and stated the entire $6000 amount switched from traditional IRA contribution to a Roth IRA contribution (back door Roth, basically). It then asked for Explanation Statement; it auto filled some Explanation fields (after I clicked on their link for examples). I have the following questions:
1.) What should I state for the following fields?
a.) The Amount Transferred (Recharacterization plus earnings or losses):
(I have already stated $6,000 in the field "The Amount Recharacterized)
b.) Reason for the Recharacterization:
2.) It already has increased by Federal Tax Due amount - understandable!
3.) After selecting continue through screens (I did not contribute towards 2022 Roth, Skipped the screen to share Roth IRA value on Dec 31, 2022), it states:
Your income is too high to contribute and that $6K contribution into Roth is considered excess contribution. The ensuing screen states "Because you made an excess contribution of $6K to your Roth IRA, you will owe a 6% penalty ($360) each year that excess money remains in the IRA"
What am I missing or entered inaccurately for TurboTax to qualify it as a backdoor Roth transaction?
