dmertz
Level 15

Retirement tax questions

I don't understand what you are looking for.  The recharacterization and a subsequent Roth conversion are separate transactions and apply to different tax years.  The recharacterization is indicated in 2019 TurboTax by simply answering Yes in the Roth IRA contribution section when TurboTax asks, "Switch from a Roth To a Traditional IRA?"  There is no need to enter the 2020 Form 1099-R that you will receive next year reporting the recharacterization; even if you do, TurboTax will essentially ignore it.

 

If the resulting traditional IRA contribution is nondeductible, your 2019 tax return will include 2019 Form 8606 to report that contribution.  There is no tax on your 2019 tax return that results from the recharacterization.  The recharacterization will eliminate the excess contribution penalty that you had when the contribution was being treated as a Roth IRA contribution.

 

The Roth conversion will be reported on your 2020 tax return, with the taxable amount determined on 2020 Form 8606.  If you have no traditional IRAs other than the one that will receive the recharacterization of $6,000 (with a transfer of $6,900 assuming its current value), you'll convert $6,900 in 2020 with a nontaxable amount of $6,000 and a taxable amount of $900.