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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.
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Traditional IRA”
- Answer ‘Yes” on the “Roth IRA Contribution” screen
- Answer “No” to “Is This a Repayment of a Retirement Distribution
- Enter the Traditional IRA contribution amount
- 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.
- 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.
- 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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March 19, 2025
11:10 AM
7,461 Views