For tax year 2024, I contributed the max to my Roth IRA ($7000). Later in the year, I had a traditional 401(k) to Roth 401(k) conversion which made me no longer eligible to contribute directly to my Roth IRA.
Before the end of 2024, I recharacterized my Roth IRA to a traditional IRA. At the time of the recharacterization, the amount was $7500 due to investments. I waited a day and did a conversion from traditional IRA back into the Roth IRA. At the time of the conversion, the amount went down by $100 - the amount was only $400 more than the original Roth IRA contribution amount.
Will $500 or $400 be added to my marginally taxed income for 2024?
I received a 1099-R for the recharacterization and another 1099-R for the conversion.
Can someone let me know how I can enter everything into TurboTax desktop correctly? I can't seem to get TurboTax to add the $400 or $500 as taxable income, and the answer choices for the "What did you do with the money" question seem confusing to me.
