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What is "Tell Us How Much You Transferred" for Roth IRA if you have Recharacterization? Does it include earnings or losses for the amount?
Steps I took:
- Click Federal > Deductions & Credits on the left panel
- Roth IRA box? Checked
- Is This a Repayment of a Retirement Distribution? NO
- Enter Your Roth IRA Contributions: 6000
- Tell Us How Much You Transferred: Since I did full $6000 recharacterization from Roth to Traditional, is this total amount including earnings & loss? OR 6000?
- Roth IRA Explanation Statement: The "Transferred" definition within the template of this page is "Recharacterization plus earnings or losses".
So, I'm a very confused! If I were to put the amount including earnings & losses (5000) for Tell Us How Much You Transferred for Step 5, the next page will show that I have Excess Contribution of $1000 even though I did recharacterization to Traditional IRA for my $6000 Roth IRA Contribution at a loss last year due to the economic downturn :(
Bullet #7 by DanaB27 on March 20, 2021 5:00 AM on above post says Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount $6,000 (no earnings or losses). I have not seen this question at all within the online platform.
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March 4, 2023
6:12 PM