I had an ineligible contribution ($5,500) to a Roth IRA in a previous year (2018) that I re-characterized to a traditional IRA the following year (2019).
My Roth IRA had earnings of ~$50. So the total amount of the roth IRA (at the time it was ready to be rolled to a trad IRA) was $5,550.
How do I report this correctly in TurboTax?
My understanding from the IRS guidelines for Form 5329 (https://www.irs.gov/pub/irs-pdf/i5329.pdf) is that rollovers are not to be considered as excess contributions. Rather, the earnings from the rollover ($50) are to be reported on Form 8606.
The contribution amount still remains the same at $5,500 on the following year’s (2019) tax return, on Form 5329.
Is my understanding correct?
