Hello:
Doing 2023 tax return. Realize that I over-contributed to Roth IRA. Explore option to correct it.
One option is to recharacterize the Roth IRA contribution to traditional IRA. I am using Fidelity: https://www.fidelity.com/retirement-ira/recharacterize
If I do it in 2024, according to Fidelity I think I will get tax forms in 2025:
1) 2024 IRS 1099-R form for recharacterizing prior year 2023 tax contribution (code R)
2) 2024 IRS 5498 form with box 4 recharacterized contribution to the receiving IRA.
Seems not in time for the 2023 filing before April 15. So I think:
1) For 2023 I assume still need to pay the 6% penalty for now? Correct me if I am wrong.
2) After I get the 2024 tax forms in 2025, I will need to amend 2023 tax return with the recharacterization. This would remove the 6% penalty.
Questions on how to enter things in TurboTax:
1) How do I report the recharacterization in my 2023 tax return? Detailed steps appreciated.
2) Do I need to enter anything from the 5498 form in my 2023 tax return?
