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carlschwarmann
New Member

Can I ignore a 2017 1099-R dist code R for a roth re-characterization I did in 2017 for tax year 2016 and reported on my 2016 turbo tax return.

403b money to a Roth and then back to my 403b to lower my 2016 income. The amount was slightly higher then what I reported for a gain I assume I did not know about. TT 2017 says file an amended return $11 difference that can not be right?
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Accepted Solutions
dmertz
Level 15

Can I ignore a 2017 1099-R dist code R for a roth re-characterization I did in 2017 for tax year 2016 and reported on my 2016 turbo tax return.

There should be no need to amend.  The amount that you recharacterized, information that you should have included in the explanation statement with your 2016 tax return, is the only important detail regarding a recharacterization and that did not change.

One thing to note:  A recharacterization contribution is not permitted to be made to a 403(b).  The only permissible way to accomplish getting the money back to a 403(b) is to recharacterize from the Roth IRA to a traditional IRA by trustee-to-trustee transfer, then perform a rollover from the traditional IRA to the 403(b).  If you did this, you should have a 2017 Form 1099-R, code G if done by direct rollover, to be reported on your 2017 tax return.

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1 Reply
dmertz
Level 15

Can I ignore a 2017 1099-R dist code R for a roth re-characterization I did in 2017 for tax year 2016 and reported on my 2016 turbo tax return.

There should be no need to amend.  The amount that you recharacterized, information that you should have included in the explanation statement with your 2016 tax return, is the only important detail regarding a recharacterization and that did not change.

One thing to note:  A recharacterization contribution is not permitted to be made to a 403(b).  The only permissible way to accomplish getting the money back to a 403(b) is to recharacterize from the Roth IRA to a traditional IRA by trustee-to-trustee transfer, then perform a rollover from the traditional IRA to the 403(b).  If you did this, you should have a 2017 Form 1099-R, code G if done by direct rollover, to be reported on your 2017 tax return.

View solution in original post

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