3446457
Hi,
In 2024, I recharacterized my Roth contribution to traditional IRA and then recharacterized it back to Roth IRA:
How do I recharacterize a recharacterized Roth IRA contribution to Roth IRA contribution in TurboTax? How to enter these two recharacterizations in TurboTax? Are they taxable?
Thanks!
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To confirm, did you request a recharacterization from traditional IRA to Roth IRA (code N or R on Form 1099-R) or made a conversion from traditional IRA to Roth IRA?
If you made two recharacterizations then you would have to enter a Roth IRA contribution directly and print and mail the return to attach an Explanation Statement.
If you converted the traditional IRA to Roth IRA then you would follow these steps below.
You will enter the recharacterization when you enter the contribution to the Roth IRA:
To enter the Form 1099-R for the conversion:
Yes, if you see the “Additional information from 2024 federal tax return” under "All official forms required for filing" then your workaround worked and you can e-file your return.
To confirm, did you request a recharacterization from traditional IRA to Roth IRA (code N or R on Form 1099-R) or made a conversion from traditional IRA to Roth IRA?
If you made two recharacterizations then you would have to enter a Roth IRA contribution directly and print and mail the return to attach an Explanation Statement.
If you converted the traditional IRA to Roth IRA then you would follow these steps below.
You will enter the recharacterization when you enter the contribution to the Roth IRA:
To enter the Form 1099-R for the conversion:
Thanks for the reply! Yes it was a recharacterization from traditional IRA to Roth IRA with distribution code N on form 1099.
You mentioned in case of the two recharacterizations, I have to print and mail the return to attach an Explanation Statement. Can I workout around with below steps to fill out the Explanation Statement in TurboTax and file my return electronically from TurboTax?
1.enter the Roth IRA contribution directly on “Enter your Roth IRA contribution” screen
2.on “Amount Switch from a Roth To a Traditional IRA” screen, enter a non-zero amount, just for TurboxTax to open the “Roth IRA explanation statement” form for me.
3.complete the explanation statement
4.back to the “Amount Switch from a Roth To a Traditional IRA” screen, change the amount to zero, so I have zero Roth recharacterization entered.
5.Seems that TurboxTax does not delete The Explanation Statement form completed in step 3 after step 4. The explanation stmt shows up as “Additional information from 2024 federal tax return” under "All official forms required for filing" when I look those up to print.
Will above workaround work? Does TurboTax include the Explanation Statement if this workaround-version of return is filed electronically using TurboTax app?
Yes, if you see the “Additional information from 2024 federal tax return” under "All official forms required for filing" then your workaround worked and you can e-file your return.
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