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Confused about multiple 1099-Rs

I posted last year about having learned that the contributions I made to a Roth IRA in 2018, 2019, and at that point in 2020 were all ineligible contributions. I recharacterized my 2019 and 2020 contributions as Traditional IRA contributions and withdrew my 2018 contribution. 

 

Throughout the year, I made converted those recharacterized funds back to my Roth IRA and made additional contributions to my traditional IRA and converted them to a Roth IRA. As a result, I have received multiple 1099-R forms and I'm trying to ensure that I am entering everything correctly. 

 

I received the following 1099-Rs:

 

1. $5,500; Box 2a empty; Code J - this is my 2018 contribution that I withdrew; the earnings stayed in the Roth IRA. 

2. $1,424; Box 2a empty; Code N - 2020 recharacterization 

3. $6,566; Box 2a empty; Code R  - 2019 recharacterization

4. $10,731; Box 2a - $10,731; Code 2 - This is for the Traditional IRA and includes the conversions I made to my Roth IRA. All of my Traditional IRA contributions are nondeductible because I am over the limit, the same reason I am unable to contribute to a Roth IRA. 

 

After I have entered everything into TurboTax and I get to the end I am told that my total IRA distributions are $16,231 and that $0 is taxable. My understanding is that this is accurate and that none of these distributions are taxable because my Roth withdrawal was entirely my contribution and none of the earnings, my recharacterizations are non taxable, and my Traditional IRA distributions is nontaxable because they are were all nondeductible contributions. 

 

Is this all accurate? 

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3 Replies
DanaB27
Expert Alumni

Confused about multiple 1099-Rs

If you did not have any earnings in the traditional IRA then none of the conversion will be taxable because of the basis.

 

If you had earnings then each distribution/conversion will have a allocation of tax-free and taxable amount. Please be sure that you enter your value of your traditional IRA after you entered your basis on the "Tell us your value of your traditional IRA" screen.

 

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Confused about multiple 1099-Rs

Thank you! I do have one follow up question. When I am going through, it asks if I withdrew from my Roth IRA prior to 2020. Now, I withdrew my 2018 contribution in 2020 and left in the earnings. So do I answer 'no' here? I'm confused because if I answer 'no', on the next page, it asks me to confirm my net regular contributions prior to 2020 that remain in my Roth IRA. Do I then put 0 in this box? It didn't ask me whether I withdrew the contribution in 2020. 

 

I don't want it to look like the ineligible Roth IRA contribution remains in there because 1) I took it out and 2) I don't want to be penalized when I did remove it. 

 

Since they helped so much in my original post, I also wanted to see if @dmertz could throw in their two cents. 

AnnetteB6
Expert Alumni

Confused about multiple 1099-Rs

You are on the right track with how to answer the follow-up questions regarding the Roth IRA -- answering 'no' and entering '0' would be correct.  These questions are there to determine the remaining basis in the Roth IRA.

 

@Jdcasares129

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