Hi macuser_22,
My situation is similar, with 3 exceptions, and was wondering how to correctly fill in the TurboTax interview questions.
Exceptions:
1) I have code N on my 1009-R, instead of code R.
2) I did not later do a conversion back to Roth IRA like in the original question in this thread.
3) I also made an excess Roth contribution in 2017 which was realized and withdrawn in tax year 2019.
Summary of events in my situation:
1) In Feb 2019, contributed $6,000 to Roth IRA for tax year 2019 (not 2018).
2) In Dec 2019, realized my my income was too high for tax year 2019 to contribute to Roth.
3) In Dec 2019, recharacterized $7,058.61 ($6,000 roth contribution + earnings) to Traditional IRA
4) My 1099-R shows code N ("Recharacterized IRA contribution made for 2019 and recharacterized in 2019.")
5) In 2017, I made an excess contribution of $5,500 to a Roth IRA. I had also contributed $5,500 to Roth in 2018 (not an excess contribution for 2018).
6) I realized the mistake in 2019, and withdrew 2017's $5,500 contribution in Dec 2019.
7) 1099-R shows code J ("Early distribution from a Roth IRA, no known exception (in most cases, under age 59½)") for the $5,500 amount.
For the recharacterization, I've gone back to TurboTax (downloaded Premier software version, not online version) to Federal Taxes > Deductions & Credits > Retirement section and:
- Entered $6,000 as the Roth IRA contribution amount
- Entered $6,000 as the transferred amount switched from Roth to Traditional IRA ... (even though the actual amount transferred / recharacterized is $7,058.61 which includes the earnings. The 1099-R also reflects this $7,058.61 amount with code N)
Questions:
1) Is the recharacterization correctly entered in TurboTax?
2) How should the 2017 $5,500 excess Roth contribution / withdrawn amount be reported in TurboTax?
- I have entered the 1099-R info for the 2017 $5,500 excess Roth contribution in the Federal Taxes > Wages & Income > Retirement Plans and Social Security section.
- Under the Federal Taxes > Deductions & Credits > Retirement and Investments > Traditional and Roth IRA Contributions section, I have entered the following for the 2017 excess Roth contribution:
---- $5,500 for the "Prior Year Roth IRA Contributions" question, which is wanting to know the net regular contributions and distributions prior to 2019.
---- $5,500 for the "Excess Contributions" question.
---- $5,500 for the "Contributions Withdrawn Before the Due Date" question
The funny thing here is that TurboTax is now showing "$500" on the Federal Taxes > Deductions & Credits summary page, under Retirement and Investment > Traditional and Roth IRA Contributions. But I did not make this $500 contribution. The $6k excess from 2019 was recharacterized, and the $5,500 from 2017 was withdrawn (and reported to TurboTax).
Did I enter information correctly in TurboTax, or is this a software bug??
