I did the 401K to roth conversion, $110000, with after tax contribution $3300. I recharacterized $30000 to a new IRA. How to compute the new IRA basis ?

[tc333]

In 2017, I did the 401K to roth conversion, $110000, with after tax contribution $3300. Then,  I recharacterized $30000 to a new IRA before 4/15/2018. Questions:

1. How to compute the new IRA basis ?

2. Did the recharacterization include part of the after tax contribution? How do I find out information from my 2017 TT return?

[dmertz · Accepted solution]

The $30,000 recharacterized came from the taxable portion.  The nontaxable amount of the rollover from the 401(k) to the Roth IRA remains at $3,300 and the taxable portion of the rollover to the Roth IRA becomes $76,700 as a result of the recharacterization of the $30,000 back to a traditional IRA.  The traditional IRA acquires no basis in nondeductible traditional IRA contributions from these transactions.

Entered into 2017 TurboTax with a code G 2017 Form 1099-R with $110,000 in box 1, $106,700 in box 2a and $3,300 in box 5, then in the follow-up indicating that you rolled the money over to a Roth IRA and then recharacterized a portion, leaving $80,000 in the Roth IRA, results in TurboTax including $110,000 on Form 1040 line, $76,700 on line 16b and the word ROLLOVER next to the line.  TurboTax's IRA Information Worksheet will show $76,700 in taxable Roth conversions and $3,300 in nontaxable Roth conversions.

[tc333]

Big Thanks!!! For the 2017 return I did see the taxable $76700  in the IRA Information Worksheet.  On Form 1040, line 16a and 16b, I saw a bigger number.  It must be the combination of  my husband and my parts.  However, I cannot find where those numbers were derived from. Could you shed some lights on them?  Thanks again!

[dmertz]

All amounts on line 16 come from entering Forms 1099-R that do not have the IRA/SEP/SIMPLE box marked (traditional IRAs) and do not have code J, T or Q in box 7 (Roth IRAs).  Line 16b should be less than line 16a by $33,300 (assuming that all of the other Forms 1099-R reported on line 16 were fully taxable, otherwise the difference should be even greater).

[tc333]

Thanks aigain!  I was wondering which worksheet TT used to derive those numbers.  Since 16a includes all 1099-R from various sources, TT must have a worksheet to compute the sum of them to derive the 16a and 16b numbers.  I'm looking for that TT worksheet.  Thanks for the help!

[dmertz]

I think you are looking for TurboTax's 1099-R Summary.

[tc333]

Sounds like it.  But, I cannot find such worksheet in my 2017 return.  Is there a special step to preserve all the intermediate TT worksheets?  Thanks for your time again!

[dmertz]

If you've entered any Forms 1099-R, it should be present in forms mode or in the pdf with all worksheets.