I realize that there have been similar posts but would appreciate any insight.
Situation:
In 2019 my daughter contributed to her Roth IRA. After doing an earning check we realized she had overcontributed due to a year end bonus.
We contacted the Roth administrator (Fidelity). On 4/15/2020 they recharacterized the excess contributions from a Roth IRA to a standard IRA.
This was reported on the 2019 tax filing with the following explanation:
Recharacterization Explanation
Date of the Original Contribution: 8/1/2019
Date of the Recharacterization: 4/15/2020
The Amount Recharacterized: $2227.60.
The Amount Transferred (Recharacterization plus earnings or losses): $2219.69
Reason for the Recharacterization: Excess contribution
This year she received a 1099-R for the recharacterization as if it were the 2020 tax year.
Fidelity provided
1099-R showing a recharacterization (code R) for 2,209.39 with a 2020 form date.
5498 Regular IRA contribution for $2,209.39 with a 2020 date.
Is Fidelity classifying the recharacterization as a 2020 tax event versus a 2019 one?
My question is, given this mess, how do we report this in TT?
Do we need to file an amended return for 2019?
If not, how do I reflect this in the 2020 filing?
