As noted above, your Roth conversion will be a 2026 transaction reportable on your 2026 tax return, not on your 2025 tax return. Line 14 of your 2025 Form 8606 will carry forward to line 2 of your 2...
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As noted above, your Roth conversion will be a 2026 transaction reportable on your 2026 tax return, not on your 2025 tax return. Line 14 of your 2025 Form 8606 will carry forward to line 2 of your 2026 Form 8606. Regarding the in-kind recharacterization, until you receive the 2026 Form 1099-R it's going to be difficult to know the exact value transferred to accomplish the amount of recharacterization that you requested. However, for the purpose of preparing your 2025 tax return, it doesn't really matter. All that really matters for entry into 2025 TurboTax is the amount of contribution that you requested to be recharacterized (the entire contribution, I imagine). Normally your explanation statement regarding the recharacterization would mention both the amount recharacterized and the amount transferred, but it should be sufficient to simply say that Fidelity calculated and transferred the gain/loss-adjusted amount that needed to be transferred to accomplish the recharacterization. (I doubt that the IRS will ever read this explanation statement.) When the code-R 2026 Form 1099-R reporting the recharacterization arrives, you can ignore it. The explanation statement included with your 2025 tax return takes its place. If you do enter this Form 1099-R into 2026 TurboTax, 2026 TurboTax will remind you that the recharacterization needed to be reflected on your 2025 tax return (as a traditional IRA contribution). If you enter this Form 1099-R into 2025 TurboTax, 2025 TurboTax will ignore it.