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Retirement tax questions
Regarding (2), you still have a 6% penalty in 2017 for the 2016 excess carried into 2017. By making the regular distribution of the excess in 2018, you'll avoid the same penalty again for 2018.
When you enter the original Roth IRA contribution for 2017 and in the follow-up indicate that you'll recharacterize it to a traditional IRA, TurboTax should immediately prompt you to compete an explanation statement regarding the recharacterization.
There is no need to wait to convert your traditional IRA to Roth. Any distribution from the traditional IRA in 2018 that you convert to Roth will be reportable on your 2018 tax return.
When you enter the original Roth IRA contribution for 2017 and in the follow-up indicate that you'll recharacterize it to a traditional IRA, TurboTax should immediately prompt you to compete an explanation statement regarding the recharacterization.
There is no need to wait to convert your traditional IRA to Roth. Any distribution from the traditional IRA in 2018 that you convert to Roth will be reportable on your 2018 tax return.
‎June 6, 2019
10:18 AM