Hi, I'm having some trouble with reports a recharacterization and Backdoor Roth IRA.
So for background, in 2022, I initially contributed 6,000 directly to a Roth IRA in January. Many months later I learned that I was going to make above the limit that allows you to contribute directly to a Roth IRA so I made a recharacterization, effectively moving my money from the Roth to the traditional IRA. By the time I did that I had lost some money so it was down to the 4,600s so that's what ended up being recharacterized. My money sat in my traditional IRA for 1 or 2 days until I was able to do the Backdoor Roth IRA (effectively transferring my money from my traditional to my Roth IRA). The issue is that I think (but I'm not 100% sure) that my investments made some money (maybe a little over $100) while sitting in the traditional IRA which I understand would be taxable. I do not know how to confirm if I made any money and how much while my investments were in my traditional IRA and I called my brokerage firm and so far they have not being very helpful. I received two 1099-Rs and two 5498 forms. I will provide this information here:
Roth IRA form 1099-R
1. Gross distribution: 4641.97
2a. Taxable amount 0
7. N
Traditional IRA form 1099-R
1. Gross distribution 4762.75
2a. Taxable amount 4762.75
2b. both with check marks
7. 2, X on IRA/SEP/SIMPLE box
Traditional IRA Form 5498
4. Recharacterized contributions 4641.97
5. Fair market value of account 0
7. IRA type IRA
Roth IRA Form 5498
3. Roth IRA conversion amount 4762.75
5. Fair market value of account 10403.73
7. IRA type ROTH Ira
Roth IRA contributions 6000
My questions are:
1. Are you guys able to tell from this documentation (which is all they gave) if there were any taxable gains when my investments were sitting in the traditional IRA? How would I report this? I already submitted all my documents and it's not showing that I have to pay any taxes.
2. Why is there a difference between the gross distributions of my two 1099-Rs?
3. I would appreciate a step by step guide on how to report all of this with my specific numbers on Turbotax. I already tried to do it, I think I did it correctly, the only piece that does not fit the puzzle is that if I made some money in the traditional IRA that would be taxable and I have not being able to report that yet.
Thank you for your help.
