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Do I need to amend a 2018 tax return if in 2019 I re-characterized a 2018 Traditional IRA to Roth IRA due to the 2018 Traditional IRA being disallowed?

 
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4 Replies
dmertz
Level 15

Do I need to amend a 2018 tax return if in 2019 I re-characterized a 2018 Traditional IRA to Roth IRA due to the 2018 Traditional IRA being disallowed?

Only if your 2018 tax return does not already reflect the result of the recharacterization.

Do I need to amend a 2018 tax return if in 2019 I re-characterized a 2018 Traditional IRA to Roth IRA due to the 2018 Traditional IRA being disallowed?

The Re-characterization occurred after the 2018 Tax Return was filed.

dmertz
Level 15

Do I need to amend a 2018 tax return if in 2019 I re-characterized a 2018 Traditional IRA to Roth IRA due to the 2018 Traditional IRA being disallowed?

So, since the traditional IRA contribution is nondeductible, are you saying that your 2018 tax return reported a nondeductible traditional IRA contribution Form 8606 line 1?  If so, that would be cause to amend your 2018 tax return (or at least amend your 2018 Form 8606).  Otherwise, if your 2018 Form 8606 did not show a nondeductible contribution on line 1 and did not show a traditional IRA contribution on Schedule 1 line 32, there would be no need to amend unless the recharacterization resulted in an excess Roth IRA contribution.

Do I need to amend a 2018 tax return if in 2019 I re-characterized a 2018 Traditional IRA to Roth IRA due to the 2018 Traditional IRA being disallowed?

Yes, Form 8606 Line 1 does have the 2018 amount of the Traditional IRA entered.  Thank you

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