Retirement tax questions

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@PT313 wrote:

Thanks Macuser22!

Let me make my case clear:

1. I am not entering a new contribution to ROTH IRA, but convert from Traditional IRA to Roth.

2. The IRA fund I am converting, contains part of recharacterized money which had been taxed and should now be tax free. After I entered the total amount I withdraw from IRA account($2000), I should use form 8606 to adjust the non-taxable amount ($300), which was recharacterized  in year 2002. 

However, since I am retired and don't have earned income, I am not qualify to contribute to either IRA or ROTH IRA, according to TurboTax. Under this situation, TurboTax doesn't let me go through the IRA contribution steps as you suggested!

I think this is a bug in TurboTax design, because I have already reported that I have converted $2000 into ROTH IRA. TurboTax should let me continue working on this money and let me adjust the non-taxable amount ($300).  As I understand, this amount can't be deducted this time  (not $2000-$300) because I only made a partial conversion from this IRA to ROTH IRA account. The deduction should only take a percentage, based on the recharacterized  Amount/My total IRA contribution (or the total value of my all IRA accounts at the time of withdraw)? I need TurboTax to help me calculate the percentage !

 

I know that I have to fill the form 8606 for this purpose, but TurboTax does NOT guide me through this process!

Or, I forgot to say, I am using TurboTax Premier version on PC and updated to the newest version, not online version. I tried "StepByStep", "Forms", and I also checked "Tools" but neither way, I can find the IRA or ROTH IRA related topics, AFTER I entered the $2000 converted IRA withdraw into ROTH IRA account. 

Any one else have any ideas or any of you have any experiences on "getting tax free on the recharacterized  IRA contribution"?

Thanks!

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I told you above how to enter the Roth contribution that you recharacterized and produce the 8606 form and how to enter the 1099-R form to show the basis. 

If you recharacterized in 2002 then you should have a 2002 8606 with the basis on line 14 to enter.    If you never filed a 2002 8606 then you must download the 2002 8606 form and file it with the non deductible amount on line 1, 3 and 14.

You can find the 2002 8606 here:

https://apps.irs.gov/app/picklist/list/priorFormPublication.html

You can only do that in the step-by-step mode.  I posted screenshots of what to do.  What part of that does not work for you?