turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

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

How do I report a recent recharacterization of a roth ira contribution from march 2023 (that was counted towards our 2022 taxes)?

Our joint income in 2022 and 2023 was too great to allow for roth ira contributions. We paid the 6% penalty in our 2022 taxes then forgot about the issue until recently. We recharacterized the contribution to a traditional IRA recently. How do I report the recharacterization in our 2023 taxes that are due on October 15th?
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

How do I report a recent recharacterization of a roth ira contribution from march 2023 (that was counted towards our 2022 taxes)?

An excess Roth IRA contribution made in 2022 is not permitted to be recharacterized in 2024.

 

The only thing that I can see that could potentially be done in 2024 to correct the excess Roth IRA contribution from 2022 and move the money to a traditional IRA is to take a regular distribution equal to the amount of the excess Roth contribution and use that cash as you would any cash to make a regular traditional IRA contribution independent of the Roth IRA distribution.  However, this would not eliminate the excess and 6% penalty for 2023.  It would only eliminate the excess and penalty for 2024 and beyond.

View solution in original post

3 Replies

How do I report a recent recharacterization of a roth ira contribution from march 2023 (that was counted towards our 2022 taxes)?

Please check back later. I will page @dmertz.

How do I report a recent recharacterization of a roth ira contribution from march 2023 (that was counted towards our 2022 taxes)?

Thank you, I will check back later.

 

dmertz
Level 15

How do I report a recent recharacterization of a roth ira contribution from march 2023 (that was counted towards our 2022 taxes)?

An excess Roth IRA contribution made in 2022 is not permitted to be recharacterized in 2024.

 

The only thing that I can see that could potentially be done in 2024 to correct the excess Roth IRA contribution from 2022 and move the money to a traditional IRA is to take a regular distribution equal to the amount of the excess Roth contribution and use that cash as you would any cash to make a regular traditional IRA contribution independent of the Roth IRA distribution.  However, this would not eliminate the excess and 6% penalty for 2023.  It would only eliminate the excess and penalty for 2024 and beyond.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies