Hi all,
I had to recharacterize my Roth IRA contributions (made in 2022) to Traditional IRA in 2023. Before tax day 2023, I want to convert this recharacterized amount from Traditional IRA to Roth IRA. Yet, I am unsure of how to reflect this in Turbo Tax.
Recharacterization: I followed the steps for recharacterization outline multiple times here in the forum, e.g. @Recharacterization of Roth IRA - that was easy enough:
- 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 and enter the 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.
Conversion: How should I report the backdoor Roth IRA now in my 2022 taxes, i.e. the conversion of my recharacterized amount - given that I needed to do the recharacterization first and now want to do a backdoor Roth IRA conversion? Or is this something I would only enter in my 2023 taxes next year and I am all set with the recharacterization inputs?
