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Retirement tax questions
A 2021 Form1099-R with code R -Recharacterized IRA contribution made for 2020 belongs on the 2020 return. But a 1099-R with code R will do nothing to your return. You can only report it as mentioned below. Therefore, you can ignore the 1099-R. The box 1 on the 1099-R will report the total recharacterized amount (contribution plus earnings) but it does not separately report the earnings and box 2a must be zero.
To verify, did you make a Roth contribution for 2020 that you recharacterized in 2021 to a traditional IRA? If yes you will enter the
recharacterization when you enter the contribution to the Roth IRA:
- Login to your TurboTax Account
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution
- Enter the Roth contribution amount
- Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
- TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
- On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you are thinking about doing a backdoor Roth. If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible)
Do you have a second Form 1099-R for the conversion?
Or did you accidentally request a recharacterization of your traditional IRA contribution to Roth IRA contribution instead of a conversion?
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