DanaB27
Expert Alumni

Retirement tax questions

You need to file Form 8606 if you choose to make the Traditional IRA contribution nondeductible or if it's automatically nondeductible because of your income and a retirement plan at work.

 

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.
  10. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" if you are thinking about doing a backdoor Roth. Otherwise select "No". (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)

 

Form 1099-R with code N needs to be entered on your return but you can ignore Form 1099-R with code R.

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