wwl
Returning Member

Roth to Traditional IRA recharacterization and then Backdoor Roth IRA

Hi, I'm having some trouble with a Roth to Traditional IRA recharacterization and then a Backdoor Roth IRA conversion.

 

For background,

a) on 4/15/24, I initially contributed 8,000 directly to a Roth IRA as a 2024 contribution. This contribution was inadvertently made my Roth (as I am not eligible to contribute directly to a Roth IRA

b) I made a recharacterization (on 4/20/24), effectively moving my money from the Roth to the traditional IRA. When I did recharacterize the initial 8,000 I also inadvertently moved some uninvested cash ($46.69) from the Roth to the traditional IRA.c) The money sat in my traditional IRA for a few days until I was able to do the Backdoor Roth IRA (transferring the money from my traditional to my Roth IRA).  I converted the entire amount in the traditional IRA (8046.70 which includes 1 cent in interest while in the traditional account).

 

I received two 1099-Rs forms (5498s will presumably follow later in the year). I provide this information here:

 

Roth IRA form 1099-R

Box 1.Gross distribution: 8046.69

Box 2a. Taxable amount 0

Box 7. N

 

Traditional IRA form 1099-R

Box 1 Gross distribution 8046.70

Box 2a. Taxable amount 8046.70

Box 2b. both with check marks

Box 7.  2, X on IRA/SEP/SIMPLE box

 

My questions are:

  1. Given all the transactions happened in 2024 and relate to 2024 how do I enter the information in TT?
  2. Presumably I indicate a Roth contribution of 8,000 and then indicate that it was recharacterized.  Unfortunately, when I do that because I moved 8,046.69 (more than the initial contribution), TT is indicating I have excess contributions of $46.69 to my traditional IRA. 
  3. Also, how do I then enter the conversion of the 8,046.70 to the Roth?  That conversion would return the excess $46.69 back to the Roth and presumably eliminate the excess contribution that TT is implying?

I would appreciate a step by step guide on how to report all of this with my specific numbers on Turbotax.  I use the desktop version of TT, if that has any impact on the instructions.

 

Thank you in advance for your help.