I need assistance with the "Tell us the Value of your Traditional IRA" page. Also, the 8606 doesn't seem to look right, but here is our situation.
- February 2024: My wife changed employers. She had a 401(k) at the job she left.
- April 2024: She rolled over the 401(k) to a Vanguard "Rollover IRA" (traditional IRA). This triggered a 1099-R.
- August 2024: She did a Roth conversion, transferring all the funds in the Vanguard "Rollover IRA" (traditional IRA) to a Roth IRA. This triggered an additional 1099-R.
- September 2024: We directly contributed $1,000 to the Roth IRA.
- January 2025: We realized our Modified AGI exceeded the limit to contribute to a Roth IRA, so we did a "recharacterization" of the $1,000 contribution (plus earnings of $114, adding up to $1114) back to the Traditional IRA above.
Technically, the value of her Traditional IRA on December 31st, 2024 was zero. However, in Jan 2025, we recharacterized from Roth to Traditional. That $1000 contribution was post-tax, so I want to make sure it's properly showing up as nondeductible on the 8606.
I am having trouble correctly inputting this into TurboTax. I've added the 1099-Rs (two of them) in the income section, but the "Tell us the value of your traditional IRA" is not very clear.
"Value of spouse's Traditional, SEP, and SIMPLE IRAs on December 31, 2024": $0?
Outstanding Rollovers: $0
Outstanding Recharacterizations: -- Do I put $0? -- OR -- do I put $1000 (contribution that was recharacterized? -- OR do I put the $1114 (contribution plus earnings)?
