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Retirement tax questions
@Jkessler93 wrote:
Thank you very much for your explanation, that certainly helps a lot. I just have a few follow up questions.
- You mentioned that "Since the after-tax Roth contribution is now a Traditional IRA contribution..." However, I converted the total amount (~$9000) in my Traditional IRA back into my Roth IRA in March 2021. How do I report this?
- Turbotax has a page "Tell us how much you transferred," with the prompt "Amount switched from a Roth to a Traditional IRA." Should this be $6,000 (the amount that I originally contributed), or $5800, the amount that I actually recharacterized (the original $6000 but after a loss of $200).
- On the next page, titled "Roth IRA Explanation Statement," it asks for "The Amount Recharacterized" and "The Amount Transferred (Recharacterization plus earnings or losses)." It also says "if you have more than one recharacterization, enter the information for all recharacterizations." I have two questions about this:
- First, should I include the ~$900 that I recharacterized from my 2019 return? Ie, should I input $6900 into this box?
- Ignoring the $900, should the first box ("The Amount Recharacterized") be $6000 and the second box ("The Amount Transferred") be $5800?
- Do I need to amend my 2019 return even though it turns out that I didn't actually exceed the income limitation for 2019?
The conversion done in 2021 is reported on yiur 2021 tax return next year.
As i said above the original contribution *amount* (not adjusted for gains or losses) is entered.
Yes you need to amend 2019 to report the recharacterization. Anyone can do that. I does not mean that there was an excess.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
‎April 27, 2021
6:12 PM