DanaB27
Expert Alumni

Get your taxes done using TurboTax

Your husband will have to enter the Traditional IRA contribution with the steps you mentioned. If you get "Tell us How much you Transferred" Instead of "Did you change your mind" then leave this blank since your husband did not make a recharacterization.

 

You will have to enter a recharacterization from Roth IRA to Traditional IRA, therefore you need to select "Roth IRA" in the IRA contribution interview:

 

  1. Click on "Search" on the top right and type “IRA contributions” 
  2. Click on “Jump to IRA contributions"
  3. Select “Roth IRA
  4. Answer ‘Yes” on the “Roth IRA Contribution” screen
  5. Answer “No” to “Is This a Repayment of a Retirement Distribution
  6. Enter the Roth contribution amount 
  7. 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.
  8. 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.
  9. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" since you 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.

 

You will get a 2025 Form 1099-R  for the recharacterization with code R-Recharacterized IRA contribution made for 2024 and this belongs on the 2024 return. But a Form 1099-R with code R will change nothing on your return. You can only report it as mentioned above. Therefore, you can ignore the Form 1099-R with code R when you get it in 2026.

 

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