Retirement tax questions


@bmo742 wrote:

Do I report the recharacterization to the traditional IRA on my 2024 or 2025 taxes since I recharacterized in February of 2025? 

 

 


You report the recharacterization for the year the original contribution was made.  So, if you recharacterized a 2024 contribution before April 15, 2025, you report it on your 2024 return.   If you waited until after April 15, recharacterization is not allowed.  

 

You say you made contributions in both 2024 and 2025 totaling $3550.  Were the 2025 contributions made retroactive to 2024?  In that case they are all considered 2024 contributions, and you report all the recharacterizations on your 2024 return.  But if the 2025 contribution was done for the 2025 tax year, you would report the recharacterization on your 2025 return. 

 

What a recharacterization does is to treat the 2024 contribution as if it was made to a traditional IRA all along, so a 2024 contribution must be recharacterized in a "timely manner" (before the April 15, 2025 deadline) and is reported on the 2024 return.