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 a Traditional in 2022 for 2021. This was realized and corrected before taxes were filed, so the recharacterization explanation was provided on the original return (a Form 8606 was generated, so I don't think an amended return is required). The recharacterization was subsequently also converted to Roth later in 2022. So all the money discussed here is now "Rothified" and the Traditional basically has zero in it (but is still open).
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. In other words, a recharacterization (for 2021) and regular contribution (for 2022) and a re-conversion of the recharacterized money all occurred in calendar year 2022. All is now Roth, none is Traditional.
Fast forward to 2023, 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 on 5498) and the $6,157 recharacterization for 2021 that was processed in 2022 (Line 4 on 5498).
My question is:
- 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?
- Do I check both boxes for contributions to a Traditional and a Roth? And if so,
- Which amounts go where?
In advance of any replies, thank you!
