Hi, I'm having some trouble with a Roth to Traditional IRA recharacterization and then a Backdoor Roth IRA conversion.
For background,
a) on 4/15/24, I initially contributed 8,000 directly to a Roth IRA as a 2024 contribution. This contribution was inadvertently made my Roth (as I am not eligible to contribute directly to a Roth IRA
b) I made a recharacterization (on 4/20/24), effectively moving my money from the Roth to the traditional IRA. When I did recharacterize the initial 8,000 I also inadvertently moved some uninvested cash ($46.69) from the Roth to the traditional IRA.c) The money sat in my traditional IRA for a few days until I was able to do the Backdoor Roth IRA (transferring the money from my traditional to my Roth IRA). I converted the entire amount in the traditional IRA (8046.70 which includes 1 cent in interest while in the traditional account).
I received two 1099-Rs forms (5498s will presumably follow later in the year). I provide this information here:
Roth IRA form 1099-R
Box 1.Gross distribution: 8046.69
Box 2a. Taxable amount 0
Box 7. N
Traditional IRA form 1099-R
Box 1 Gross distribution 8046.70
Box 2a. Taxable amount 8046.70
Box 2b. both with check marks
Box 7. 2, X on IRA/SEP/SIMPLE box
My questions are:
- Given all the transactions happened in 2024 and relate to 2024 how do I enter the information in TT?
- Presumably I indicate a Roth contribution of 8,000 and then indicate that it was recharacterized. Unfortunately, when I do that because I moved 8,046.69 (more than the initial contribution), TT is indicating I have excess contributions of $46.69 to my traditional IRA.
- Also, how do I then enter the conversion of the 8,046.70 to the Roth? That conversion would return the excess $46.69 back to the Roth and presumably eliminate the excess contribution that TT is implying?
I would appreciate a step by step guide on how to report all of this with my specific numbers on Turbotax. I use the desktop version of TT, if that has any impact on the instructions.
Thank you in advance for your help.
