DanaB27
Expert Alumni

Retirement tax questions

If you choose to recharacterize the contribution then you can first enter a recharacterization to add the Explanation statement and then edit the entry to show just a Traditional IRA contribution. The statement will be still attached to the return.

 

 

  1. Click on "Search" on the top right and type “IRA contributions” 
  2. Click on “Jump to IRA contributions"
  3. Select “Traditional IRA
  4. Answer ‘Yes” on the “Roth IRA Contribution” screen
  5. Answer “No” to “Is This a Repayment of a Retirement Distribution
  6. Enter the Traditional IRA contribution amount 
  7. Answer “Yes” to the recharacterized question on the “Switch from a Traditional To a Roth IRA?” screen and enter the contribution amount (no earnings or losses) on the "Tell us how much you transferred" screen.
  8. 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 to a Roth IRA in 2024. The contribution $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized to a Traditional IRA in 2025. 
  9. Click "Back" and delete the entry on the “Switch from a Traditional To a Roth IRA?” screen and then continue through the questions.
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