I made a mistake and contributed $6500 to my Roth IRA account in 2024 for 2023. I quickly realized that my income is going to be over the limit to contribute directly to Roth IRA. I then "recharacterized" my Roth IRA plus gains to my Traditional IRA account, I then converted $6500 Traditional IRA back to Roth IRA (Back door contribution). How do I deal with this mess in Turbo tax? I saw someone else posted something very similar, I tried to follow the steps, however, it still told me that I over contributed to my Roth due to my high income and that I need to withdraw. Please help, Can you please listed all the steps instead of summarize.
Thanks
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You will enter the recharacterization when you enter the contribution to the Roth IRA on your 2023 return:
You will get a 2024 Form 1099-R for the recharacterization with code R-Recharacterized IRA contribution made for 2023 and this belongs on the 2023 return. But a Form 1099-R with code R will do nothing to your return. You can only report it as mentioned above. Therefore, you can ignore the Form 1099-R with code R when you get it in 2025.
Next year on your 2024 return you will enter the conversion when you enter the 2024 Form 1099-R with code 2:
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