In Feb 2020, I got ETrade to rollover $5000 from my traditional IRA to my Roth IRA. Rather than doing a rollover they did a recharacterization. On my brokerage statements I can see it listed as "recharacter" for $4975.32 after deducting $25 IRA characterization fee. I received a 1099-R from Etrade for 2020 for $4975.32 with code 'R'. When I enter the 1099-R into Turbotax, I am told that I need to amend my 2019 return. I have also received a 5498 for the year 2020 for the same amount of $4975.32. Do I have to still file an amended 2019 return or can I use the 5498 to indicate that this is just a transfer of funds from Traditional IRA to Roth IRA? I am hoping there is a simple fix to this than amending returns.
