So I had a similar situation happen to me as the original poster. I contributed to my Roth in 2021, however when doing my taxes in 2022, TurboTax showed that my AGI was too high, so I had to recharacterize the Roth contribution to Traditional in 2022 for 2021. In 2022, because I knew my AGI would be too high, I proactively contributed $6,000 to my Traditional IRA, then did a Roth conversion on that amount.
Fast forward to 2023, as you indicated in your reply to the other user, I received a 1099-R for the recharacterized amount (with my Roth account number on it and Code R in Box 7) AND one that appears to contain the Roth conversion amount plus the recharacterized amount (with my Traditional IRA account number on it). I also got Form 5498 for my Traditional IRA that shows the regular $6,000 contribution (Line 1) and the $6,157 recharacterization for 2021 that was processed in 2022 (Line 4).
My questions are:
- Is an amended return needed for the 2021 tax year due to the recharacterization?
- I've entered ALL the 1099-R forms into my return... How do I tackle the "Traditional IRA and Roth IRA" section when working on my return this year for 2022 to reflect BOTH the normal Traditional contribution that I converted AND the Roth conversion that I recharacterized for 2021?
This is all messy, I know, but I want to get this right the first time... Measure twice, cut once.
I thank you in advance for any light you can shed on this!
