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Level 2
Mar 3, 2021 1:29 AM UTC
Question

Roth overpayment and recharacterization

Hi

 

Doing my 2020 taxes I realized that my AGI was too high to make the Roth payments I had already made in 2020. I had my brokerage recharacterize the payment and gains into a non deductible IRA but i'm not sure how to declare the gains I made , I presume these are declared as income but when going through this section on Turbo Tax I wasn't asked.

    3 replies

    fanfare
    Level 15
    Mar 3, 2021 1:40 AM UTC

    what you recharacterized is the original amount you put in.

    your gain is shown as a taxable amount on the 1099-R you get.

    NickC2Author
    Level 2
    Mar 3, 2021 1:57 AM UTC

    ok, when do I get the 1099-R ? Would that be in 2022 ?

    So the excess can just sit in the IRA and i'll pay tax on the gains at some point?