Retirement tax questions

1) Yes, you can recharacterize the IRA contribution and then convert it.

2) Yes, you will get two 2025 Form 1099-R in 2026, one with code R for the recharacterization and one for the conversion with code 2 usually. A Form 1099-R with code R will do nothing to your return. You can only report it as mentioned below. Therefore, you can ignore the Form 1099-R with code R when you get it in 2026.

3) You will report the recharacterization on your 2024 return when you enter the contribution to the Roth IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA”
5. Answer ‘Yes” on the “Roth IRA Contribution” screen
6. Answer “No” to “Is This a Repayment of a Retirement Distribution
7. Enter the Roth contribution amount 
8. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
9. 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.
10. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" since you are thinking about doing a backdoor Roth. If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible.

TurboTax will create the 2024 Form 8606 with a basis on line 14 and this will be carried over to your 2025 return.

The conversion will be entered next year on your 2025 return since it happened in 2025. Please see How do I enter a backdoor Roth IRA conversion? for additional information.