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cindyuu119
Returning Member

Cannot generate the right 8606 form for recharaterization in premier

I did recharatcerization from Roth IRA to Traditional IRA. The original contribution is $3200; recharacterization amount is $3585. Once it is in traditional IRA, I recharacterized to Roth. I also did another $2800 from Traditional IRA to Roth IRA. I followed steps in turbox to file nondeductible contributions but 8606 form is not generated correctly. Please help me fix it. 

Steps I did in turbotax 

1. select Traditional IRA and Roth IRA 

Traditional IRA

2.Repayment -> No

3.Total 2020 Traditional IRA contribution -> $2800, 0 contribution for 2020 in 2021

4.Tell Us How much of $2800 transferred -> 2800 (But actually I transferred $6385 in total. But if I put $6385, 8606 is not generated)

5. Excess contribution before 2020 -> No

6. Any Non-Deductible Contributions to Roth IRA -> Yes

7. Total Basis as of Dec 31, 2019 -> 0

 

Roth IRA Contribution 

1. Roth Contribution -> $3200

2. Amount switched from Roth IRA to Traditional IRA ->$3585

3.Did you open account before 2020 -> Yes 

 

Now 8606 form 

line 1 $3585

line 2 0

line 3 $3585

line 14 $3585 

 

I tried it all night, still not sure how to fix it 

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3 Replies

Cannot generate the right 8606 form for recharaterization in premier

You made a couple of errors here.

 

"Roth IRA Contribution 

1. Roth Contribution -> $3200"

That's wrong, there is no Roth contribution going on here.

 

even though it grew to 3,585,

you contributed 3,200 to a traditional IRA and you indicate that it should be non-deductible contribution.

 

"I also did another $2800 from Traditional IRA to Roth IRA."

if you had a balance in Traditional IRA(s) when you started this exercise, some or all of your conversion will be taxable.

That depends on the Form 8606 from prior years.

 

Finally enter the 1099-R  6,385 and state that you converted it all.

 

Cannot generate the right 8606 form for recharaterization in premier

Update: answer revised above.

Cannot generate the right 8606 form for recharaterization in premier

If I read your situation correctly, assuming your AGI is within limits,

you would be better off to skip the non-deductible election.

That would give you deduction of 100% of your $3,200 instead of a pro rata portion of it.

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