Error on IRA Calc Worksheet (or is it me)?

Forum|Forum|4 years ago
March 24, 2022
3 replies
20 views

I contributed to my Roth in error and recharacterized to a traditional IRA. So, $6k on lines 19 and 22. But line 24 is supposed to be the sum of lines 20-23, but it's showing as $0. TurboTax then catches the amount on line 25 any says that it should be $0, presumably because it's > line 24. All these values come from the walk through, btw. I didn't add them directly to the form.

Did I mess something up (and I'm reading the form incorrectly) or is there an error here? Regardless, since the software is flagging an error, I don't want to file without knowing whether there's an issue.

Best answer by MarilynG

I don't think you should have $6,000 on Line 25, as you did not 'withdraw excess contributions', you recharacterized.

Since we can't see your return in this forum, below are the steps to enter a recharacterization. You may want to return to the interview and review your entries.

You will enter the recharacterization when you enter the contribution to the Roth IRA:

Login to your TurboTax Account
Click on the Search box on the top and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “Roth IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution
Enter the Roth contribution amount
Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and amount (no earnings or losses)
TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
On the screen "Choose Not to Deduct IRA Contributions" answer "Yes"

MarilynGAnswer

Level 15

I don't think you should have $6,000 on Line 25, as you did not 'withdraw excess contributions', you recharacterized.

Since we can't see your return in this forum, below are the steps to enter a recharacterization. You may want to return to the interview and review your entries.

You will enter the recharacterization when you enter the contribution to the Roth IRA:

Login to your TurboTax Account
Click on the Search box on the top and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “Roth IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution
Enter the Roth contribution amount
Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and amount (no earnings or losses)
TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
On the screen "Choose Not to Deduct IRA Contributions" answer "Yes"

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dmertz

Level 15

Line 26 needs to be left blank.

AtteroAuthor

Level 2

I wonder what I buggered up to get the number in line 26? You were both right - that fixed it. No matter what I did in the step-by-step, line 26 was populated. Maybe I was misunderstanding a question. I just deleted it by hand.

Thank you.