In June 2023 I had partially contributed to a Roth IRA.
When I realized that sale of some stock may put me over the MAGI limit, I performed a recharacterization of $2,948.84 (my contributions up to that point).
I then contributed them to a Traditional IRA, then performed a Backdoor Roth IRA conversion within Vanguard.
As of January 2024, I have received two 2023 1099-Rs from Vanguard:
- Traditional IRA
- Gross Distribution: $6,738.39
- Taxable Amount: $6,738.39
- Distribution Code: 2
- Roth IRA
- Gross Distribution: $2,948.84
- Taxable Amount: $0.00
- Distribution Code: N
When I follow the steps as directed by Turbotax for documenting a backdoor Roth I end up on the summary page, under Wages & Income, saying "Here's your 1099-R info" that shows:
| VANGUARD FIDUCIARY TRUST COMPANY (this is the Traditional) | $6,738.39 |
| VANGUARD FIDUCIARY TRUST COMPANY (this is the Roth) | $2,948.84 |
| Total | $9,687.23 |
Turbotax is adding these distributions together and seems to imply that I took distributions from these accounts, which I did not --
- the distribution from the Roth is the amount I backed out via the "recharacterization" process
- the distribution from the Traditional seems to be the total backdoor amount that was moved to Roth, but Vanguard's dashboard shows I contributed a total of $6500 for the year (the annual limit).
And I notice that the amount of federal refund and state due have decreased and increased, respectively.
I want to make sure I'm documenting this correctly and not being overpenalized due to a mistake on my part. This is my first tax year completing a backdoor roth and that's further complicated by the recharacterization I had to do.
Thanks in advance for any advice you can give.
