So not exactly sure what info is needed, but in 2021 my wife and I contributed 6k each to Roth IRA. Then in Jan 2022 I realized we went over income limit so I recharacterized the 6k each + earnings into a traditional IRA. We did not have a traditional IRA prior so these were new traditional IRAs. We did have other funds in the roths that were legitimate. My accounts are with Vanguard. Her accounts are with Fidelity.
Years go by and then in June 2024 I converted all of the traditional IRA funds to our roth IRAs. I went back and looked at our 2022 and 2021 tax returns through TurboTax and the 2022 returns do have the sums for the recharacterization. The 2021 tax returns don't appear to have anything related to these events in them.
A few questions:
1) Do I need to amend the 2021 for any reason or since the recharacterization was in 2022 and is on the 2022 return I am fine on the 2021 return?
2) From reading other posts it seems as though the earnings from the recharacterization would not have been taxed at the time of recharacterization, is that correct?
3) It does not look like a form 8606 was ever filled out, but from reading other posts it seems like since this was not a traditional IRA contribution, but rather, a recharacterization from a Roth one was not needed. Is this correct?
4) On the now 2024 conversion into the Roth from traditional, how will TurboTax know the basis for when I file for taxes for year 2024? Since the recharacterized sums included both after-tax contributions and before-tax earnings and, therefore, the conversion from traditional to Roth includes both the original after-tax contribution + before-tax earnings? Do I just need to let TurboTax know this upcoming years that the original contributions were 6k each?
5) Finally, is there anything I need to do between now and tax return season for year 2024 to correct past years that I have not mentioned? Whether that be for the IRS or for TurboTax to know the true taxed amounts on the 2024 conversion?
I appreciate the help...this is all new to me.
