@Jdcasares129 wrote:
Where does form 8606 come in then? And why does it say at the end that I shouldn't report the recharacterization in either my 2019 or 2020 taxes if I complete the recharacterization in 2020?
The 8606, as in the end of the intrusion in the box above, reports the new Traditional IRA contribution as a non-deductible contribution if you choose not to deduct it or your MAGI is too high to deduct.
It does not say not to report the recharacterization. It says that a 2019 contribution that was recharacterized in 2020 can ONLY be reported on a 2019 tax return - the year that the contribution was made.
But you will not receive the 1099-R that reports it to you until 2021 which means that you would have to amend 2019 in 2021 in order to report it unless you have the necessary information to report it now even though you do not yet have the 2020 1099-R so that you will not need to amend when you do receive the 1099-R.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
