109594
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

nealnye28
New Member

Roth IRA recharacterized money not counted correctly

I don't understand how the 'IRA Contribution Results' page calculated its numbers. It seems to be double-counting the recharacterized dollars.
The situation:
2016 Roth contributions = $4000
Amount to recharacterize = $1020
2016 Trad. contributions = $123

TurboTax reports:
Traditional IRA contributions $1,143
Roth IRA contributions $1,960
Total contributions $3,103


This doesn't make sense to me. I contributed $4,123, so shouldn't I see that as the total amount of contrilbution?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
dmertz
Level 15

Roth IRA recharacterized money not counted correctly

When entering the Roth IRA contribution, make sure that you enter $4,000 as your Roth IRA contribution and then in the follow-up indicate that you recharacterized $1,020 of that.  The result that you are seeing suggests that you entered only the $2,980 of net Roth IRA contributions rather than $4,000 that you should have.

View solution in original post

5 Replies
dmertz
Level 15

Roth IRA recharacterized money not counted correctly

When entering the Roth IRA contribution, make sure that you enter $4,000 as your Roth IRA contribution and then in the follow-up indicate that you recharacterized $1,020 of that.  The result that you are seeing suggests that you entered only the $2,980 of net Roth IRA contributions rather than $4,000 that you should have.

nealnye28
New Member

Roth IRA recharacterized money not counted correctly

Thanks for the quick reply. Actually I did exactly as you suggested, putting $4000 as the Roth IRA contribution and then putting $1020 on the next page when it asks about re-characterization. That's why I'm confused about the final result.  Is there a way to clear out existing data and starting over for a particular section?
dmertz
Level 15

Roth IRA recharacterized money not counted correctly

Everything can be cleared by deleting the IRA Contributions Worksheet:  Click My Account -> Tools -> Delete a form, then click the Delete link next to IRA Contrib Wks.

First, though, it would be informative to find out where things went wrong.  You might find that you also entered a $1,020 return of contribution prior to deciding to recharacterize to a traditional IRA instead.  In fact, I'll bet that that is what happened since I can reproduce your result this way.  That would appear as $1,020 on line 26 of the IRA Contrib Wks.  Unfortunately, with no excess contribution remaining, TurboTax will not present the step-by-step page that would allow you to delete the indication that you will have $1,020 of the contribution returned.

Before the deleting the IRA Contrib Wks, try this to force TurboTax to display the potentially offending entry:  Change your Roth IRA contribution entry from $4,000 to $10,000 to ensure that TurboTax detects an excess contribution.  Proceed to the You Currently Have a Penalty page where I bet you'll see $1,020 that you need to delete.  After deleting the $1,020 entry here, go back though and change the $10,000 back to the correct amount of $4,000.
nealnye28
New Member

Roth IRA recharacterized money not counted correctly

Bingo! That's it, you solved it!
jaclaeys
New Member

Roth IRA recharacterized money not counted correctly

I had the exact same problem ... This most recent entry solved it.   Seems like a software bug for TT to fix.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question