Tl;dr:
1st 1099 R (ROTH): Gross distribution : 4,593.61 , Taxable amount : 0
2nd 1099R (Traditional IRA): Gross distribution : 2,534.83 , Taxable amount : 2,534.83
3rd 1099R (Traditional IRA) : Gross distribution : 1,866.20 , taxable amount : 1,866.20
Since I recharacterized it in jan 2021 before filling my return for 2020.
How should I report this ? or do I really need to file an amendment?
I mistakenly put in money in my ROTH IRA in 2020 and apparently I cannot since my AGA is more than 130K.
Then fidelity advised me to recharacterize it to avoid penalty.
I never took money out in my bank account, just moved it from Roth IRA->traditional IRA -> Roth IRA pretty quickly.
I also reported this in turbo tax while filling 2020 taxes.
Here is what the recharacterization letter says:
Based on your request to recharacterize $3,800.00 and applicable IRS regulations pertaining to IRA recharacterizations, the total applicable earnings or loss for the computation period was $728.11 and the total amount recharacterized was $4,531.15. The amount of the recharacterization reported on your next statement and tax forms issued next January (Form 5498 and Form 1099-R) may be slightly different than this calculation due to intra-day price fluctuations of the securities recharacterized.
Did fidelity send me a wrong 1099R?
Why my last two 1099 R say that my taxable amount is 2,534.83+1,866.20 as I never took out any money?
- my 8606 for 2020 1040 shows $3,800 in line 1 , 0 in line 2 and $3800 in line 14
Can anyone help me? I am willing to pay. Thanks
