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casheverytime1
Level 1

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

I also added $3,000 to that traditional IRA that is non-deductable

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macuser_22
Level 15

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

Glad to help.


Solved in comments.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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12 Replies
macuser_22
Level 15

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

There should be no "next steps".  
What else do you think you need to do?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
casheverytime1
Level 1

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

Do I need to fill out a 8606 or 1040x?  I would be happy to not do any more next steps, but wanted to make sure
macuser_22
Level 15

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

You said you "reported" it as non-deductible - if so, that would automatically create a 8606.

The Roth contribution should be entered in the IRA contributions section and say that you switched to a Traditions IRA.  If it is non-deductible then a 8606 will be created.

If a 8606 is not part of your tax return then it was not reported as a non-deductible contribution.  If it was deducted instead, it would be on the 1040 schedule 1 line 32.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
casheverytime1
Level 1

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

Yes I reported $5,500 of a non-deductable traditional IRA contribution, but after filing, I accidentally put $2,500 into a roth IRA and then re-characterized the same amount to the traditional IRA.  I wanted to make sure I don't need to file more papers
macuser_22
Level 15

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

That would be a problem.

Your *total* 2018 IRA contributions (Traditional plus Roth) cannot exceed $5,500 ($6,500 if over age 50).

If your total contributions were $8,000, then you have an excess of $2,500 if under age 50, that must be removed before April 15, 2019 to avoid a penalty.   That should be done as a "return of contribution" and not a normal distributions to that the IRA custodian also returns any earnings attributed to the excess and codes the 2019 1099-R correctly.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
casheverytime1
Level 1

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

No my contribution total was $5,500.  However, I had to re-characterize $2,500 of it back to a traditional IRA
macuser_22
Level 15

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

I am confused.  You said: "...I reported $5,500 of a non-deductable traditional IRA contribution, but after filing, I accidentally put $2,500 into a roth IRA..."

That totals $5,500 + $2,500 = $8,000.   

Do you mean that you actually only contributed $3,000 to the Traditional IRA and then $2,500 to the Roth subsequently recharactorized to the Traditional RA?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
casheverytime1
Level 1

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

Yes, exactly. I did 3k to the traditional IRA and 2.5k that was recharacterized
macuser_22
Level 15

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

Then as long as the total $5,500 was reported as non deductible on the 8606 you are fine.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
macuser_22
Level 15

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

Does the 2018 8606 have the $5,500 on line 1?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
casheverytime1
Level 1

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

Yes. Thank you
macuser_22
Level 15

I recharacterized $2,500 from a roth to a traditional IRA in 2018. I reported a non-deductable traditional IRA amount of $5,500 with turbo tax. What are my next steps?

Glad to help.


Solved in comments.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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