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Retirement tax questions
I followed your good instructions on entering the 2021 1099-R for my recharacterization from Roth to traditional and then my withdrawal of the excess contribution from my traditional IRA, but now I am in the Deductions & Credits part of TT and I am wondering how to answer the interview questions there on my Roth IRA, specifically the interview question on whether I made an excess contribution to my Roth IRA. Do I answer Yes to this question or no?
On the one hand the answer is now "No" as the excess contribution was first recharacterized and is now withdrawn, but originally it was an excess contribution. If I answer No it gives me the warning/error message to say our income is too high to make a Roth contribution. So how should we answer these questions?