Parial Roth recharacterization in 2017
In 2017 I converted $10,000 from my IRA to a Roth IRA, as shown on 1099-R. Later in the year I recharacterized $9000 back to the IRA, as shown on second 1099-R. The Roth had increased in value and before the transfer was worth $11,000. After the transfer the balance was $2000, as shown on Form 5498.
When filling out the 1099-R forms on TT do I just fill in the amounts as shown on the forms? Do the 1099-R forms take into account that this was a partial recharacterization and the Roth had increased in value?
TT does ask when filling out the conversion 1099-R how much of the original amount was not recharacterized back into the IRA. How is this calculated? Is it $10,000-$9000=$1000 or is it the closing balance of $2000 or a more complex calculation? This of course is the key number as it is the amount one pays taxes on. Does TT have a worksheet for partial recharacterizations?
I am using round numbers for simplicity.
