I recharacterized over contributions to my Roth IRA into a Traditional IRA. I then back door converted the Traditional back to Roth. How do I report? (Forms 5329 & 8606)?

[heykevk]

I accidentally overcontributed to my Roth IRA. When I realized that, I had the over contributions (the full amount of contributions) re-characterized into a Traditional IRA. I then backdoor converted the amount back to a Roth. My financial institution told me I needed a form 5329 and 8606. How do I go about this in TurboTax?

[DanaB27]

You will enter the recharacterization when you enter the contribution to the Roth IRA for 2024:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA”
5. Answer ‘Yes” on the “Roth IRA Contribution” screen
6. Answer “No” to “Is This a Repayment of a Retirement Distribution
7. Enter the Roth contribution amount 
8. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
9. 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.
10. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" since you are doing a backdoor Roth. If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible.

If you converted the funds in 2024 then you should have a 2024 Form 1099-R:

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion" screen and choose “I converted some or all of it to a Roth IRA”
5. On the "Here's your 1099-R info" screen click "Continue"
6. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

Note, since you recharacterized the excess contribution you do not have an excess contribution and do not need Form 5329.

[heykevk]

Thank you. 

I was able to import my 1099-R because I did all this in CY2024. However, my wife just recharacterized from Roth to Traditional, then did a back door conversion back into Roth in 2025 (for 2024 contributions). Therefore she will not receive a 1099-R until next year. 

How do I go about addressing her recharacterization and back door conversion?

[RobertB4444]

You'll enter it as though she had received the 1099-R this year.  Enter the 1099-R just as it will be when you receive it next year and then when you do receive it you can ignore it because you already entered it on your 2024 return.

@heykevk