I have hard time trying to properly enter Roth recharacterization to Traditional Roth and back to converting them to Backdoor Roth for tax year 2023 ( and filing in 2024).
I had incurred some gain and I did get two 1099-R forms and two 5498 Forms. Here are the details.
For 2023 my original contribution was $6,500 in Roth IRA in early January 2023, recharacterized this to Traditional IRA after realizing limitation, by this time fidelity suggested to transfer $6,905.16 and after few days transfer back from traditional IRA to Roth $6,908.14 for backdoor Roth ( I didn't had any amount in my traditional IRA before so this ~$2 is gained in Traditional IRA).
I did had basis from 2022 line 14: $5612. There is no other basis in any previous year.
Roth IRA form 1099-R
1. Gross distribution: 6905.16
2a. Taxable amount 0
7. N
Traditional IRA form 1099-R
1. Gross distribution 6908.14
2a. Taxable amount 6908.14
2b. both with check marks
7. 2, X on IRA/SEP/SIMPLE box
I followed all the steps for recharacterization, explanation steps and entering 1099-R ( for Traditional IRA ) from TurboTax guideline as in other community threads.
My Questions are:
1. Should I use both 1099-R form ( from Traditional IRA as well as Roth IRA ) in TurboTax ?
2. TurboTax seems to have confused if I use both of the 1099-R, is there any other way to handle Recharacterization along with backdoor Roth conversation ?
3. I think my gain $408 ( $6908-$6500) taxable, is that correct ? If so, TurboTax seems to not adding this my overall earning, so how to fix this ?
Thanks,
