My spouse contributed to her traditional IRA in March 2024. Then she recharacterized the full contribution amount to ROTH IRA in December 2024. We have received a 1099-R for that recharacterization. I am able to enter this in TurboTax as listed below.
Now, in March 2025, when preparing to file our taxes, we realize that we are over the MAGI limit for ROTH contributions. So, looks like we have two options 1) to take the excess contribution out or, 2) to recharacterize the ROTH contribution (which is originally a recharacterization of the traditional IRA contribution.) I am leaning towards option 2. However, I am not quite sure how to enter this information (recharacterization of a recharacterization) in TurboTax.
Thanks for any help with this!
If you choose to recharacterize the contribution then you can first enter a recharacterization to add the Explanation statement and then edit the entry to show just a Traditional IRA contribution. The statement will be still attached to the return.
If you choose to recharacterize the contribution then you can first enter a recharacterization to add the Explanation statement and then edit the entry to show just a Traditional IRA contribution. The statement will be still attached to the return.