Recharacterize Roth conversion done in 2022 in 2022 itself
I majorly screwed up in Roth conversion I did for me and wife into IRA to Roth IRA in Jan 2022. Today in 12/26/2022 and I have to reverse this. This is my situation.
- Over the years before, and up and until 2022, me and my wife contributed both deductible and non-deductible contributions into our respective IRAs
- And this same IRA, in my case, also contains the 401K roll overs from earlier employments also
- So, both me and my wife's IRA has a mix of pre and post tax contributions.
- In Jan 2022, I rolled over only the the post tax IRA contributions from the respective IRA accounts into our respective ROTH IRA accounts, without knowing that the rolled amount will be treated split between post and pre-tax by IRS! I came to learn this is a mistake only on Merry X-mas 2022 😞
- By Jan 2022, I was 62 yrs and my wife was 53 yrs (not sure if age is relevant for all this)
- I vaguely know we can recharacterize this roth conversion before Oct 15th 2023
I will call my IRA & Roth IRA custodian on 27th dec (26th Dec 2022 being holiday) to do recharacterize the amount since I want to cover the recharacterization before I file 2022 return. Pl. help with these questions.
a) Do I have to recharacterize before 31st Dec 2022 itself to cover both roll over and recharacterizes into my 2022 return?
b) OR I can recharacterize it before April 2023 prior to filing the return?
c) I use turbo-tax premium for my taxes. I am not finding any menu that shows
- neither how to report my Jan 2022 roth conversion
- nor how to report recharacterizing the reversal that I want to do in Dec 2022 for the above Roth conversion
- Pl. point me to where to look for this in Turbo-Tax premium. It only asks for if I made IRA contribution, which I did into both of our accounts for 7000 each. But the roth conversion that I already did is over 50K for each of us and thus the recharacterization that I want to now do will be in that range. So I couldn't figure the forms.
Pl. help
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